LGディスプレイADRの適時開示

Other Process Level Control

<Supplier Account Registration Management>
The discretionary authority of the department such as in charge of purchasing, etc., reviews and approves whether the evaluation details of the company for the new supplier meet the standards, and the cash management team leader checks the original documents required for the registration of the company and approves the account registration.

LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others

As a result of the test performed,
No material weakness found
(Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November,
‘25.January)

<Sales Confirmation>
At the end of each month, the person in charge of the sales department agrees/confirms the monthly sales amount with each customer, including the sales price and quantity by model, and reports it to the leader.

LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 12 others

As a result of the test performed,
No material weakness found
(Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November,
‘25.January)

<Report on Inventory Physical Inspection Results>
The discretionary authority of the supervising department reviews and approves the results of the regular physical inspection of inventory assets.

LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 16 others

As a result of the test performed,
No material weakness found
(Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November,
‘25.January)

6-K 1 d916698d6k.htm FORM 6-K Form 6-K Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2025

LG Display Co., Ltd.

(Translation of Registrant’s name into English)

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

Table of Contents

ANNUAL REPORT

(From January 1, 2024 to December 31, 2024)

THIS IS A TRANSLATION OF THE ANNUAL REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED AND CERTAIN NUMBERS WERE ROUNDED FOR THE CONVENIENCE OF READERS. REFERENCES TO “Q1”, “Q2”, “Q3” AND “Q4” OF A FISCAL YEAR ARE REFERENCES TO THE THREE-MONTH PERIODS ENDED MARCH 31, JUNE 30, SEPTEMBER 30 AND DECEMBER 31, RESPECTIVELY, OF SUCH FISCAL YEAR. REFERENCES TO “” ARE REFERENCES TO THE KOREAN WON.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH KOREAN INTERNATIONAL FINANCIAL REPORTING STANDARDS, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. K-IFRS ALSO DIFFERS IN CERTAIN RESPECTS FROM THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES IN THIS DOCUMENT.

Contents


1.	Company		3
	A.	Name and contact information	3
	B.	Credit rating	3
	C.	Capitalization	4
	D.	Voting rights	4
	E.	Dividends	5
	F.	Matters relating to Articles of Incorporation	5

2.	Business		7
	A.	Business overview	7
	B.	Industry	8
	C.	New businesses	11
	D.	Customer-oriented marketing activities	11

3.	Major Products and Raw Materials		11
	A.	Major products	11
	B.	Average selling price trend of major products	12
	C.	Major raw materials	12

4.	Production and Equipment		13
	A.	Production capacity and output	13
	B.	Production performance and utilization ratio	13
	C.	Investment plan	14

5.	Sales		14
	A.	Sales performance	14
	B.	Sales organization and sales route	14
	C.	Sales methods and sales terms	15
	D.	Sales strategy	15
	E.	Major customers	15

Table of Contents


6.	Purchase Orders		16

7.	Risk Management and Derivative Contracts		16
	A.	Risk management	16
	B.	Derivative contracts	16

8.	Major Contracts		17

9.	Research & Development		18
	A.	Summary of R&D-related expenditures	18
	B.	R&D achievements	18

10.	Intellectual Property		20

11.	Environmental and Safety Matters		20
	A.	Business environment management	20
	B.	Product environment management	21
	C.	Safety standards	23
	D.	Green management	23
	E.	Status of sanctions	24

12.	Financial Information		27
	A.	Financial highlights (Based on consolidated K-IFRS)	27
	B.	Financial highlights (Based on separate K-IFRS)	28
	C.	Consolidated subsidiaries as of December 31, 2024	29
	D.	Status of equity investments as of December 31, 2024	30

13.	Audit Information		30
	A.	Audit service	30
	B.	Non-audit service	30

14.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		31
	A.	Risk relating to forward-looking statements	31
	B.	Overview	31
	C.	Financial condition and results of operations	32
	D.	Liquidity and capital resources	44

15.	Board of Directors		48
	A.	Members of the board of directors	48
	B.	Committees of the board of directors	48
	C.	Independence of directors	49

16.	Information Regarding Shares		49
	A.	Total number of shares	49
	B.	Shareholder list	49

17.	Directors and Employees		49
	A.	Directors	49
	B.	Employees	54
	C.	Remuneration for executive officers (excluding directors)	54

18.	Other Matters		54
	A.	Legal proceedings	54
	B.	Status of collateral pledged to related party	54
	C.	Material events subsequent to the reporting period	54

Attachment: 1. Financial Statements in accordance with K-IFRS The name of our company is “EL-GI DISPLAY CHUSIK HOESA,” which shall be “LG Display Co., Ltd.” in English.

Table of Contents

Company

Name and contact information

Our principal executive office is located at LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea, and our telephone number is +82-2-3777-1010. Our website address is http://www.lgdisplay.com.

Credit rating

(1)

Corporate bonds (Domestic)


Subject instrument	Month of rating	Credit rating (1)	Rating agency (Rating range)
Corporate bonds	February 2022	A+	NICE Information Service Co., Ltd. (AAA ~ D)
	June 2022
	March 2023
	May 2023	A
	June 2024	A+	Korea Investors Service, Inc. (AAA ~ D)
	February 2022
	June 2022
	August 2022
	January 2023
	May 2023	A
	June 2024	A+	Korea Ratings Corporation (AAA ~ D)
	June 2022
	March 2023
	May 2023
	June 2024	A

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(1)	Domestic corporate bond credit ratings are generally defined to indicate the following:


Subject instrument	Credit rating	Definition
Corporate bonds	AAA	Strongest capacity for timely repayment.
	AA+/AA/AA-	Very strong capacity for timely repayment. This capacity may, nevertheless, be slightly inferior than is the case for the highest rating category
	A+/A/A-	Strong capacity for timely repayment. This capacity may, nevertheless, be more vulnerable to adverse changes in circumstances or in economic conditions than is the case for higher rating categories.
	BBB+/BBB/BBB-	Capacity for timely repayment is adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity.
	BB+/BB/BB-	Capacity for timely repayment is currently adequate, but that there are some speculative characteristics that make the repayment uncertain over time.
	B+/B/B-	Lack of adequate capacity for repayment and speculative characteristics. Interest payment in time of unfavorable economic conditions is uncertain.
	CCC	Lack of capacity for even current repayment and high risk of default.
	CC	Greater uncertainties than higher ratings.
	C	High credit risk and lack of capacity for timely repayment.
	D	Insolvency.

(2)

Commercial paper

All previously issued commercial papers have been redeemed, and there is no remaining balance as of the end of December 31, 2024.

Capitalization

(1)

Change in capital stock (as of December 31, 2024)

(Unit: Won, Shares)

Date of Issuance

Method of

Issuance

Details of the Shares Issued

Type

Number of
Shares

Par value
per Share

Offering price
per Share

Remarks

March 15, 2024

Paid-in capital increase (share rights offering to existing shareholders)

Common shares

142,184,300

5,000

9,090

Ratio of paid-in capital increase: 39.74%

(2)

Convertible bonds (as of December 31, 2024)

We have no outstanding convertible bonds as of December 31, 2024.

Voting rights (as of December 31, 2024)

(Unit: share)


Description		Number of shares
A. Total number of shares issued(1)(2):	Common shares(1)		500,000,000
A. Total number of shares issued(1)(2):	Preferred shares		—
B. Shares without voting rights:	Common shares		—
B. Shares without voting rights:	Preferred shares		—
C. Shares subject to restrictions on voting rights pursuant to our articles of incorporation:	Common shares		—
	Preferred shares		—
D. Shares subject to restrictions on voting rights pursuant to regulations:	Common shares		—
	Preferred shares		—
E. Shares with restored voting rights:	Common shares		—
	Preferred shares		—
Total number of issued shares with voting rights (=A – B – C – D + E):	Common shares		500,000,000
	Preferred shares		—

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(1)	Authorized: 500,000,000 shares

(2)	An amendment to the Articles of Incorporation to increase the number of authorized shares has been submitted for approval at the upcoming 40th annual general meeting of shareholders, scheduled to be held on March 20, 2025.

Dividends

Dividends for the three most recent fiscal years


Description (unit)		2024			2023			2022
Par value (Won)			5,000			5,000			5,000
Profit (loss) for the year (million Won)(1)			(2,562,606	)		(2,733,742	)		(3,071,565	)
Earnings (loss) per share (Won)(2)(3)			(5,438	)		(7,177	)		(8,064	)
Total cash dividend amount for the period (million Won)			—			—			—
Total stock dividend amount for the period (million Won)			—			—			—
Cash dividend payout ratio (%)(4)			—			—			—
Cash dividend yield (%)(5)	Common shares		—			—			—
Cash dividend yield (%)(5)	Preferred shares		—			—			—
Stock dividend yield (%)	Common shares		—			—			—
Stock dividend yield (%)	Preferred shares		—			—			—
Cash dividend per share (Won)	Common shares		—			—			—
Cash dividend per share (Won)	Preferred shares		—			—			—
Stock dividend per share (share)	Common shares		—			—			—
Stock dividend per share (share)	Preferred shares		—			—			—

(1)	Based on profit for the year attributable to the owners of the controlling company.

(2)	Earnings per share is based on par value of 5,000 per share and is calculated by dividing net income by weighted average number of common shares.

(3)

The number of outstanding common shares has increased due to our paid-in capital increase in the first quarter of 2024. The basic earnings (loss) per share and diluted earnings (loss) per share for the years ended December 31, 2023 and December 31, 2022 have been adjusted in consideration of the bonus element in a rights issue to our existing shareholders during the first quarter of 2024.

Historical dividend information


Number of consecutive years of dividends(1)		Average Dividend Yield(1)
Interim dividends	Annual dividends	Last 3 years	Last 5 years
—	—	0.94	0.56

(1)	The average dividend yield is calculated using the simple arithmetic average method, including the fiscal years in which no dividend was paid (dividends were paid with respect to fiscal year 2021 only based on the dividend resolution date).

(2)	The dividend for the fiscal year 2024 is scheduled to be approved at the 40th annual general meeting of shareholders on March 20, 2025. Since past dividend records are based on confirmed dividend payments, the dividend history for the current fiscal year has not been included.

Matters relating to Articles of Incorporation

Our current articles of incorporation were amended as of March 22, 2024 at the 39th annual general meeting of shareholders, and certain amendments as summarized below have been submitted for approval at the upcoming 40th annual general meeting of shareholders. Consequently, our articles of incorporation may be subject to change based on the results of such upcoming annual general meeting of shareholders.

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Proposed Changes to the Articles of Incorporation

Articles to be Amended at the 40th Annual General Meeting of Shareholders

Description of Amendments

(1) Revision of Article 6 (Total Number of Authorized Shares)

(2) Revision of Paragraph 1 of Article 9-2 (Number and Characteristics of Preferred Shares)

(3) Revision of Paragraph 3 of Article 10 (Preemptive Rights)

(4) Deletion of Paragraph 5 of Article 30 (Meetings of the Board of Directors)

(5) Revision of Paragraphs 1, 2 and 3 of Article 43-2 (Interim Dividends)

(6) Insertion of new Addenda

(1) The number of authorized shares is to be increased to better accommodate the evolving business environment (Article 6).

(2) The number of preferred shares shall be determined in proportion to the total number of issued and outstanding shares to ensure consistency with applicable laws including the Commercial Act and the Capital Markets Act, and other relevant regulations (Article 9-2, Paragraph 1).

(3) The issuance limit of new shares to persons other than existing shareholders of company is to be increased and the scope of application for the issuance limit of new shares is to be restricted to third-parties allocations only to enable a more flexible response to the evolving business environment (Article 10, Paragraph 3).

(4) The provision stipulating that the meeting of the Board of Directors shall be held in Korea is to be deleted to allow for flexible arrangement of the meeting of The Board of Directors (Deletion of Article 30, Paragraph 5).

(5) The record date for interim dividends may be designated subsequent to the determination of the dividend amount, and interim dividends may be distributed in forms other than cash including shares in accordance with the Commercial Act to enhance predictability for investors (Article 43-2).

(6) The issuance limit of new shares to persons other than existing shareholders of company is to be calculated without deducting the number of shares previously issued and allocated to the Employee Stock Ownership Association (Article 2 of the Addenda).

(7) The issuance limit of convertibles bonds and bond warrants is to be calculated without deducting the amount of convertible bonds and bond warrants previously issued (Article 3 of the Addenda).

(1)

Recent Changes to Articles of Incorporation

Articles Amended at the 38th Annual General Meeting of Shareholders

Description of Amendments

(1) Revision of Paragraph 5 of Article 9-2 (Number and Characteristics of Preferred Shares)

(2) Deletion of Paragraph 6 of Article 10-2 (Stock Options) and re-numbering of previous Paragraph 7 to Paragraph 6

(3) Revision of Article 11 (Record Date for Dividends on New Shares)

(4) Revision of Paragraphs 1 and 2 of Article 12 (Suspension of Alteration of Register of Shareholders and Record Date)

(5) Revision of Paragraph 5 of Article 15-2 (Issuance of Convertible Bonds)

(6) Deletion of Paragraph 5 of Article 15-3 (Issuance of Bonds with Warrants)

(7) Revision of Paragraph 2 of Article 36-2 (Composition of Audit Committee) and establishment of Paragraph 6

(8) Revision of Paragraph 3 of Article 43 (Dividends)

(9) Deletion of Paragraph 4 of Article 43-2 (Interim Dividends) and re-numbering of previous Paragraph 6 to Paragraph 5

(1) To reflect an amendment to the Commercial Act, which removed the previous requirement that the record date for dividends on new shares must be set as the last day of the preceding fiscal year (Commercial Act Article 350, Paragraph 3) (Articles 9-2, 10-2, 11, 15-2, 15-3, 43-2)

(2) To remove information regarding the closing of the shareholder registry (Article 12) pursuant to the implementation of the Act on Electronic Registration of Stocks, Bonds, Etc.

(3) To adjust the minimum number of members of the Audit Committee in order to flexibly respond to situations where a prompt appointment of an Audit Committee member is necessary (Article 36-2, Paragraph 2).

(4) To reflect the Ministry of Justice’s authoritative interpretation that, in order for a company to apply the relevant amendment to the Commercial Act that relaxes the quorum requirement when appointing a member of the Audit Committee through electronic voting, the articles of incorporation needs to have been amended beforehand (newly added Article 36-2, Paragraph 6).

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(2)

Business Purpose (as of December 31, 2024)

Our business purpose under our articles of incorporation did not change during the reporting period ended December 31, 2024, and our current business purpose includes the following:

(as of December 31, 2024)


No.	Business Purpose	Whether Currently Engaged in by the Company
1	Research, development, production, sales and marketing of display and related products utilizing, among others, thin-film transistor liquid crystal display (“TFT-LCD”), low-temperature polycrystalline silicone (“LTPS”)-LCD and organic light-emitting diode (“OLED”) technologies	Yes
2	Research, development, production, sales and marketing of products utilizing solar energy	No, see note (1)
3	Research, development, production, sales and marketing of parts and equipment necessary for the development and production of products and technologies listed in items 1 and 2 above	Yes
4	Sale and purchase and lease of real estate	Yes
5	Other ancillary or supplemental businesses and investments relating to each of the businesses described above	Yes

(1)

Although the Company began to engage in research and development of products utilizing solar energy in 2007, due to the intense competition with Chinese companies in this sector and relative economic disadvantage of the Company’s technology, the Company decided to discontinue such business in 2010 and is currently not engaged in this business.

Business

Business overview

We were incorporated in February 1985 under the laws of the Republic of Korea. LG Electronics and LG Semicon transferred their respective LCD business to us in 1998, and since then, our business has been focused on the research, development, manufacture and sale of products that apply display technologies such as OLED and TFT-LCD. Sorting by major sales product category, television, IT products, mobile and other products, and “auto” products (comprising automotive display products) accounted for 22%, 35%, 34% and 9% of our total sales, respectively, in 2024. Our customers primarily consist of global set makers, and our top ten customers comprised 89% of our total sales revenue in 2024. As a company focused on exports, our overseas sales accounted for approximately 96% of our total sales in 2024. We have overseas sales subsidiaries located in the United States, Germany, Japan, Taiwan, China and Singapore.

Table of Contents

We operate key production facilities in Korea, China and Vietnam, and as of December 31, 2024, our cumulative annual production capacity in 2024 was approximately 6.6 million glass sheets, as converted into eighth-generation sheets (2200x2500mm). In order to expand our production capacity of differentiated and competitive products such as OLED panels, our total capital expenditures on a cash out basis was around 2.2 trillion in 2024. In 2025, we plan to maintain a similar level of capital expenditures as in 2024, at around the low-to-mid 2 trillion range.

The major raw materials for display panel production include glass, semiconductors, polarizers, organic matter, backlight units (“BLU”) and printed circuit boards (“PCB”), and the prices of our raw materials may fluctuate as a result of supply and demand in the market as well as changes in our purchase quantity.

The display industry to which we belong is highly affected by the global economic conditions. Given the characteristics of the display business, which requires large-scale investments, display panel prices may fluctuate due to an imbalance between supply and demand, which may affect our profitability. The sales performance of industry players is differentiated by not only the production capacity of each company but also other competitive differences arising from factors including technology, cost structure, product development capability, manufacturing efficiency, quality control and customer relationships, along with the price differentiation incorporating such factors. In addition, given the high proportion of our sales overseas, our sales of display panels are denominated mainly in U.S. dollars whereas our purchases of raw materials are denominated mainly in U.S. dollars, Japanese Yen and Chinese Yuan. Accordingly, our profit margins may be affected by changes in the exchange rates between the currencies. We strive to minimize the risk relating to foreign currency denominated assets, liabilities and operating cash flow due to exchange rate fluctuations.

Our research and development expenses represent approximately 8% of our sales, and we are continually creating customer value through systematic R&D activities for new products and technologies. Leveraging our competitive R&D activities, we are leading the display market by providing differentiated values in display panel products utilizing our OLED and TFT-LCD technologies for various uses including television, IT, mobile products and automobiles.

Consolidated operating results highlights

(Unit: In billions of Won)


	2024			2023			2022
Sales Revenue		26,615			21,331			26,152
Gross Profit		2,575			345			1,124
Operating Profit (loss)		(561	)		(2,510	)		(2,085	)
Total Assets		32,860			35,759			35,686
Total Liabilities		24,787			26,989			24,367

Industry

(1)

Industry characteristics

•

From the supply perspective, the display panel industry is technology- and capital-intensive in nature and requires mass production through achieving an economy of scale.

•

From the demand perspective, the display panel industry tends to demonstrate a high level of volatility depending on the global macroeconomic conditions, major regional sales events and/or seasonal factors.

•

Though the display panel industry is currently facing risks of decreased consumption of related goods in the business-to-consumer sector and reduced investor confidence in the business-to-business sector due to ongoing uncertainty in the global macroeconomic environment, there are continued opportunities in the display market to meet changes in consumer lifestyle and specific consumer needs in the mid- to long-term.

Table of Contents

•

In the market for television display panels, new opportunities from the growth of the ultra-large TV market are expected to arise with the increase of video content (including over-the-top services) and expanding uses of television (such as playing video games).

•

In the market for traditional IT products such as notebook and desktop monitors, growth opportunities for new offerings such as gaming products, portable products and AI-integrated technology are expected to increase driven by lifestyle changes.

•

The growth in the market for smartphone products continues to be concentrated around high value-added products using plastic OLED display panels that offer superior performance through diversification of form factors, low-power consumption and high resolution, in light of the increased use of smartphones for mobile contents and gaming purposes.

•

In the market for automotive display panels, display panels are increasingly being used in light of the expanded adoption of in-vehicle infotainment systems, and the market is continuing to demonstrate qualitative growth as the demand for larger and higher-resolution display panels continue to increase.

•

As the market for LCD panel-based products has reached a maturity stage, the growing adoption of OLED panels across various segments, driven by their differentiated advantages, is expected to create new opportunities.

(2)

Growth Potential

The display panel industry is expected to continue to grow, as the essential role of display products as a key device for information and communication in daily lives of individuals as well as for industrial purposes becomes more pronounced. We are strengthening our business competitiveness based on customer value and developing new markets under our strategic plan to transition our business to center around OLED, which has a strong growth potential within the display panel industry. With respect to large-sized display panels, we are focusing on expanding the OLED market through differentiated products and technology, such as META technology, which offers high-resolution and high-luminance, as well as strengthening business with new customers. We are also leading the expansion into new product areas, such as transparent OLED display panels and gaming display panels. In the medium-sized display panel business, we are increasing the proportion of premium products such as high resolution and wide screen products based on IPS and Oxide technologies, and we are also increasing the use of OLED panels in IT products to improve power consumption and provide differentiated form factors. In the small-sized display panel business, we have secured high value-added and differentiated technology and stable operating capabilities for 6th generation plastic OLED smartphone displays while continuing to grow our automotive display panels business by providing differentiated solutions such as plastic OLED, advanced thin OLED and LTPS LCD panels for ultra-large vehicle displays optimized for software-defined vehicles. We are also in the process of proactively preparing the technology to respond to new market opportunities for ultra-small-sized displays, including those in relation to augmented reality and virtual reality uses.

(3)

Cyclicality

•

The display panel business is characterized by being highly cyclical and sensitive to fluctuations in the general economy. The industry may experience volatility caused by imbalances between supply and demand due to changes in capital expenditure levels and adjustments in production utilization rates within the industry.

•

Macroeconomic factors and other causes of business cycles can affect demand for display panels. Accordingly, if supply exceeds demand, average selling prices of display panels may decrease. Conversely, if market demand outpaces supply, average selling prices may increase.

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(4)

Market conditions

•

Most display panel manufacturers are located in Asia as set forth below. Competition in the TFT-LCD sector is intensifying amid increasing levels of investment led by Chinese panel manufacturers. In response, Korean panel manufacturers are continuing their efforts to maintain their market leadership and differentiate themselves by transitioning their business focus to OLED products and upgrading their TFT-LCD businesses.

Korea: LG Display, Samsung Display, etc.

Taiwan: AU Optronics, Innolux, etc.

Japan: Japan Display, Sharp, etc.

China: BOE, CSOT, HKC, etc.

•

Our worldwide market share of large-sized display panels (i.e., panels that are 9 inches or larger) based on revenue is as follows:


	2024	2023	2022
Panels for Televisions(1)(2)	14.1%	12.5%	23.6%
Panels for IT Products(1)	19.1%	18.6%	18.8%
Total(1)	15.7%	14.6%	20.2%

(1)	Source: Large Area Display Market Tracker (OMDIA). Data for 2024 are based on OMDIA’s estimates, as actual results for 2024 Q4 have not yet been made available as of the date of this report.

(2)	Includes panels for public displays.

(5)

Competitiveness and competitive advantages

•

Our ability to compete successfully depends on factors both within and outside our control, including the development of new and premium products through technological advances, timely investments that achieve profitability, maintaining flexible product portfolio and production facility operations responsive to market conditions, price of our products, competitive production costs, productivity enhancement, our relationship with customers, success in marketing to our end-brand customers, competitive environment and economic conditions within the industry, and foreign exchange rates.

•

In order for us to compete effectively, it is critical to offer differentiated products that enable us to secure profit margins even during times of a mismatch in the market supply and demand, to be price- and cost-competitive and to maintain stable relationships with customers.

•

A substantial portion of our sales is attributable to a limited number of end-brand customers and their designated system integrators. As such, it is important to build a sustained relationship with such customers.

•

Developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. It is important that we take active measures to protect our intellectual property internationally. It is also necessary to recruit and retain experienced key managerial personnel and skilled line operators.

•

As a leading technology innovator in the display industry, we continue to focus on delivering differentiated value to our customers by developing various technologies and products, including display panels with WOLED/POLED, IPS, Oxide, in-TOUCH, Tandem and other technologies. With respect to OLED panels, following our supply of the world’s first 55-inch OLED panels for televisions in 2013, we have continued to achieve ongoing technological innovation by continuing to enhance the performance of our products and to offer differentiated large-sized OLED products such as our large-sized gaming OLED products and those incorporating our META technology. Moreover, we have continually introduced and expanded our high value-added plastic OLED products for smartphones, smartwatches, automotive products and foldable notebook computers, along with our advanced thin OLED products for tablets, among others. With respect to TFT-LCD panels, we are leading the market with our competitive advantages in technology, including through our IPS, Oxide and LTPS technology-based ultra-large television panels, desktop and notebook monitors featuring high resolutions, differentiated designs and high frequency refresh rates, and specialized products for automotive, commercial and medical uses. Our production facilities are also equipped to produce products incorporating in-TOUCH technology.

•

Moreover, we are maintaining and strengthening close long-term partnerships with major global firms to secure customers and expand relationships for technology development.

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New businesses

For our continued growth, we are actively exploring and preparing for new business opportunities in response to the changing market environment. As such, we are continually reviewing and looking at opportunities in the display and promising new industries.

Customer-oriented marketing activities

Through engaging in detailed analysis and acquiring insight on the market and industry conditions, technology, products and end-user consumers, we seek to provide differentiated values that are customer- and consumer-friendly. In addition, we engage in activities that are geared to proactively identify and offer meaningful benefits to customers and consumers. As a result, we are continually developing products that provide differentiated values using our technologies. At the same time, we strive to create new markets and mutually benefit our business and our customers by obtaining customer trust and satisfaction through our customer- and consumer-oriented marketing activities.

3.	Major Products and Raw Materials

Major products

We manufacture OLED and TFT-LCD panels, of which a significant majority is sold overseas.

(Unit: In billions of Won, except percentages)


						2024
Business area	Sales type		Items (By product)	Usage	Major trademark	Sales Revenue		Percentages (%)
Display		Goods/Products/Services/ Other sales	Televisions	Panels for televisions	LG Display		5,973		22.4	%
			IT products	Panels for monitors, notebook computers and tablets	LG Display		9,420		35.4	%
			Mobile, etc.	Panels for smartphones, smartwatches, etc.	LG Display		8,942		33.6	%
			Auto products	Panels for automobiles	LG Display		2,281		8.6	%

Total							26,616		100.0	%

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Average selling price trend of major products

The average selling prices of display panels are subject to change based on market conditions and demand by product category. The average selling price of display panels per square meter of net display area shipped in the fourth quarter of 2024 was USD 873, showing an increase from the previous quarter mainly due to an increase in production volume of smartphone display panels driven by expanded production capacity of such panels compared to the previous year. The average selling prices of display panels per square meter of net display area may continually fluctuate in the future due to changes in market conditions, demand trends and our product mix.

(Unit: US$ / m2)


Period		Average Selling Price(1)(2) (in US$ / m2)
2024 Q4		873
2024 Q3		825
2024 Q2		779
2024 Q1		782
2023 Q4		1,064
2023 Q3		804
2023 Q2		803
2023 Q1		850
2022 Q4		708
2022 Q3		675
2022 Q2		566
2022 Q1		660

(1)	Quarterly average selling price per square meter of net display area shipped.

(2)	Excludes semi-finished products in the cell process.

Major raw materials

Prices of major raw materials depend on fluctuations in supply and demand in the market as well as on changes in size and quantity of raw materials due to the increased production of large-sized panels.

(Unit: In billions of Won, except percentages)


Business area	Purchase type	Items	Usage	Cost(1)		Ratio (%)		Suppliers(2)
Display	Raw materials	PCB	Display panel manufacturing		1,215		10.6%	Youngpoong Electronics Co., Ltd., etc.
		Polarizers			1,845		16.0%	LG Chem, etc.
		BLU			1,137		9.9%	Heesung Electronics LTD., etc.
		Glass			574		5.0%	Paju Electric Glass Co., Ltd., etc.
		Drive IC			741		6.4%	LX Semicon, etc.
		Others			6,002		52.1%	—

Total					11,514		100.0%

-	Period: January 1, 2024 ~ December 31, 2024.

(1)	Based on total cost for purchase of raw materials which includes manufacturing and development costs, etc.

(2)	Among our major suppliers, Paju Electric Glass Co., Ltd. is our affiliate, LG Chem is a member company of the LG Group and LX Semicon is an affiliate of LX Holdings Corp.

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•

The market prices of main raw materials for display panels fluctuate depending on the global market conditions of raw materials and demand by product segment.

•

The market price of polarizers, which is a main raw material for display panels, decreased by 5% as of December 31, 2024 compared to the end of the previous year.

•

The market prices of PCB, drive IC and BLU, decreased by 4%, 5% and 4%, respectively, as of December 31, 2024, compared to the end of the previous year.

•

Despite the continued global economic slowdown in 2024, our raw material costs have slightly improved compared to the previous year due to an improvement in the balance of market supply and demand in the raw materials market and our efforts to strengthen our raw material cost competitiveness. The prices of raw materials may continue to fluctuate in light of changes in the market conditions of such materials.

4.	Production and Equipment

Production capacity and output

(1)

Production capacity

The table below sets forth the production capacity of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)


Business area	Items	Location of facilities	2024(1)	2023(1)	2022(1)
Display	Display panel, etc.	Gumi, Paju, Guangzhou	6,573	5,223	8,794

(1)

Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth-generation glass sheets) during the year multiplied by the number of months in a given period. The production capacity for facilities with adjusted utilization rates have been calculated based on the maximum input capacity during the period.

(2)

Production output

The table below sets forth the production output of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)


Business area	Items	Location of facilities	2024(1)	2023(1)	2022(1)
Display	Display panel, etc.	Gumi, Paju, Guangzhou	5,656	4,256	6,390

(1)	Based on the production results (input standard) of each plant converted into eighth-generation glass sheets.

Production performance and utilization ratio

(Unit: Hours, except percentages)


Production facilities	Available working hours in 2024	Actual working hours in 2024	Average utilization ratio
Gumi	8,784(1) (24 hours x 366 days)	8,784(1) (24 hours x 366 days)		100.0	%
Paju	8,784(1) (24 hours x 366 days)	8,693(1) (24 hours x 362 days)		99.0	%
Guangzhou	8,784(1) (24 hours x 366 days)	8,784(1) (24 hours x 366 days)		100.0	%

(1)	Number of days is calculated by averaging the number of working days for each facility.

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Investment plan

In 2024, our total capital expenditures on a cash out basis was around 2.2 trillion. In 2025, we plan to maintain a similar level of capital expenditures as in 2024, at around the low-to-mid 2 trillion range.

Sales

Sales performance

(Unit: In billions of Won)


Business area	Sales types	Items (Market)		2024		2023		2022(2)
Display	Products	Display panel	Overseas(1)		25,495		20,634		25,651
			Korea(1)		960		620		668
			Total		26,455		21,254		26,319
	Royalty	LCD, OLED technology patent	Overseas(1)		61		16		12
			Korea(1)		0		0		0
			Total		61		16		12
	Others	Raw materials, components, etc.	Overseas(1)		52		46		24
			Korea(1)		47		14		10
			Total		99		60		34
	Total		Overseas(1)		25,608		20,696		25,687
	Total		Korea(1)		1,007		634		678

			Total		26,615		21,330		26,365

(1)	Based on ship-to-party.

(2)	Sales excluding forward exchange hedging loss of 213 billion for currency risk management of expected export transactions, which has been reclassified to revenue.

Sales organization and sales route

•

As of December 31, 2024, each of our television, IT, mobile and auto product businesses had individual sales and customer support functions.

•

Sales subsidiaries in the United States, Germany, Japan, Taiwan, China and Singapore perform sales activities and provide local technical support to customers.

•

Sales of our products take place through one of the following two routes:

1) LG Display Headquarters and overseas manufacturing subsidiaries g Overseas sales subsidiaries (USA/Germany/Japan/Taiwan/China/Singapore), etc. g System integrators and end-brand customers g End users

2) LG Display Headquarters and overseas manufacturing subsidiaries g System integrators and end-brand customers g End users

•

Sales performance by sales route


Sales performance	Sales route(1)	Ratio
Overseas	Overseas subsidiaries		97.9	%
	Headquarters		2.1	%
Overseas sales portion (overseas sales / total sales)			96.2	%
Korea	Overseas subsidiaries		26.9	%
	Headquarters		73.1	%
Korea sales portion (Korea sales / total sales)			3.8	%

(1)	Percentage by sales route is based on revenue from the Display business segment.

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Sales methods and sales terms

•

Direct sales and sales through overseas subsidiaries, etc. Sales terms are subject to change depending on the fluctuation in the supply and demand.

Sales strategy

•

With respect to television display products, we are strengthening our competitive advantages in the premium television display market by enhancing the performance and advancing the technology of our OLED television display panels and working towards strengthening our business portfolio and reinforcing consumer values through new growth businesses such as gaming and transparent products.

•

With respect to IT display products, we are continually strengthening the sales of high-resolution, IPS, narrow bezel and other high-end display panels with major global IT product manufacturers as our primary customer base.

•

With respect to mobile and other products (a wide range of products including smartphones, smartwatches and industrial products (including aviation and medical equipment, among others)), we are continuing to build a strong and diversified business portfolio and expand our global customer base by leveraging the strength of our differentiated technology and products such as OLED, narrow bezel, low-power consumption and thin and light features.

•

With respect to automotive display products, our business is steadily growing on the back of stable orders secured through our ability to deliver differentiated value to global automobile manufacturers leveraging our diversified technology and product portfolio that includes plastic OLED, advanced thin OLED and LTPS LCD panels.

Major customers

•

Customers “A” and “B” each accounted for more than 10% of our sales revenue in 2024 and 2023. Our sales revenue derived from our top ten customers comprised 89% of our total sales revenue in 2024 and 87% in 2023.

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6.	Purchase Orders

•

We supply some of our products in accordance with the production plans of automobile manufacturers. However, the volume of our supply is subject to fluctuation depending on the customers’ actual order volume and future market conditions, and it is not possible to accurately predict the changes in demand resulting from changes in the domestic and global economic environment. Moreover, as of December 31, 2024, we do not have purchase order contracts that recognize revenue by measuring progress towards satisfaction of performance obligation by using the cost-based input method.

7.	Risk Management and Derivative Contracts

Risk management

(1)

Major market risks

Our business is exposed to credit risk, liquidity risk and market risk. Accordingly, we operate a risk management system that identifies and analyzes these risks while monitoring and managing risk level by establishing appropriate risk controls in order to ensure that such risks do not exceed certain threshold levels.

Market risk refers to the risk that income from the financial instruments that we hold or the fair value of such financial instruments will fluctuate due to fluctuations in market prices, such as exchange rates, interest rates and prices of equity securities. The objective of our market risk management system is to manage and control our exposure to market risk within an acceptable level while optimizing our profit levels.

(2)

Risk management method

As the average selling prices of OLED and TFT-LCD panels can continue to decline over time irrespective of industry-wide cyclical fluctuations, we may find it hard to manage risks associated with certain factors that are outside our control. However, we counteract such declines in average selling prices by increasing the proportion of high value added panels in our product mix while also implementing various cost reduction measures.

In addition, in order to manage our risk against foreign currency fluctuations, we eliminate such risk by adopting a policy of maintaining our net exposure risk within an acceptable level by buying or selling foreign currencies at spot rates, when necessary, to address short-term imbalances in the inflow and outflow of foreign currency funds. We also continually monitor our currency position and risk for other monetary assets and liabilities denominated in foreign currencies, and when needed, we may from time to time enter into cross-currency interest rate swap contracts and foreign currency forward contracts. Furthermore, we have adopted a policy aimed at minimizing uncertainty and financial costs arising from interest rate fluctuations and manage our interest rate risk through periodic monitoring of interest rate trends and adoption of appropriate countermeasures.

Derivative contracts

(1)

Currency risks

•

We are exposed to currency risks on sales, purchases and borrowings that are denominated in currencies other than in Won, our functional currency. These currencies are primarily the U.S. dollar, the Chinese Yuan and the Japanese Yen.

•

Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by our underlying operations, primarily in Won, the U.S. dollar and the Chinese Yuan.

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•

As of the end of the reporting period, in order to avoid risks of exchange rate fluctuations on the fair value of advance received, we entered into long position currency forward contracts of US$750 million with Standard Chartered Bank and others. As of the end of the reporting period, among the valuation gains and losses of derivatives to which fair value hedge accounting is applied, there is no ineffective portion, and we recognized a valuation gain of 155 billion (purchase commitment: USD 750 million, contract exchange rate: 1,289.1~1,310.1) as part of our foreign currency translation gains and losses. With regard to fair value hedging, the maximum expected period of exposure to fair value fluctuation risk from hedged transactions is within 13 months from the end of the reporting period.

•

As of the end of the reporting period, in order to avoid risks of interest rate fluctuations and exchange rate fluctuations on foreign currency denominated borrowings with floating interest rates, we entered into an aggregate of USD 1,480 million and CNY 726 million cross currency interest swap agreements with KB Kookmin Bank and others, for which we have not applied hedge accounting. Any rights or obligations arising from derivative contracts that do not apply hedge accounting are measured at fair value and are accounted for as assets and liabilities, whereas any resulting valuation gain or loss is recognized as profit or loss at the time such valuation gain or loss is incurred. We recognized a gain on valuation of derivative instruments in the amount of 143 billion with respect to the above foreign exchange derivative instruments held during the reporting period.

(2)

Interest rate risks

•

Our exposure to interest rate risks relates primarily to our floating rate long term loan obligations. We have established and are managing interest rate risk policies to minimize uncertainty and costs associated with interest rate fluctuations by monitoring cyclical interest rate fluctuations and enacting countermeasures.

•

As of the end of the reporting period, we entered into an aggregate of 915 billion in interest rate swap agreements with Shinhan Bank and others, for which we have not applied hedge accounting. We recognized a gain on valuation of derivative instruments in the amount of 2 billion and a loss on valuation of derivative instruments in the amount of 6 billion with respect to our interest rate derivative instruments held during the reporting period.

8.	Major Contracts

Our material contracts, other than contracts entered into in the ordinary course of business, are set forth below:


Type of agreement	Name of party	Term	Content
Technology licensing/supply agreement	Hewlett-Packard	January 2011 ~	Patent licensing of semi-conductor device technology
	Ignis Innovation, Inc.	July 2016 ~	Patent licensing of OLED related technology
	HannStar Display Corporation	December 2013 ~	Patent cross-licensing of LCD technology
	AU Optronics Corporation	August 2011 ~	Patent cross-licensing of LCD technology
	Innolux Corporation	July 2012 ~	Patent cross-licensing of LCD technology
	Universal Display Corporation	January 2015 ~ December 2025	Patent licensing of OLED related technology
	Semiconductor Energy Laboratory	January 2021 ~ December 2030	Patent licensing of LCD and OLED related technology
Real estate/others	LG Innotek Co., Ltd.	Date of contract: December 23, 2022 Term: December 26, 2022 ~ December 31, 2027	Lease of idle real estate property for rental income (the contract amount and other details are not disclosed in accordance with a non-disclosure agreement)
	LG Uplus Corp.	Date of contract: May 14, 2024	Sale of real estate property to enhance asset efficiency (for details, please refer to the Form 6-K furnished to the SEC on April 25, 2024)

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9.	Research & Development (“R&D”)

Summary of R&D-related expenditures

(Unit: In millions of Won, except percentages)


Items		2024			2023			2022
R&D Expenditures (prior to deducting governmental subsidies)			2,237,403			2,399,513			2,431,590
Governmental Subsidies			(705	)		(718	)		(1,008	)
Net R&D-Related Expenditures			2,236,698			2,398,795			2,430,582
Accounting Treatment(1)	R&D Expenses		1,687,316			1,906,616			1,927,828
Accounting Treatment(1)	Development Cost (Intangible Assets)		549,383			492,179			502,754

R&D-Related Expenditures / Revenue Ratio(2) (Total R&D-Related Expenditures ÷ Revenue for the period × 100)			8.4	%		11.2	%		9.3	%

(1)	For accounting treatment purposes, R&D expenses are presented as research and development expenses in our statements of comprehensive income, net of amortization of capitalized intangible asset development costs.

(2)	Calculated based on the R&D-related expenditures before subtracting government subsidies (state subsidies).

R&D achievements

Achievements in 2022

(1)

Developed the world’s first 16:18 aspect ratio monitor product (27.6” SDQHD)

•

Developed a 27.6” (21.5”, 21.5”, vertical arrangement) monitor product, which is optimized for multi-tasking amid the increase in working remotely as a result of the COVID-19 pandemic

•

Created a new market through the development of a new aspect ratio (16:18, 2560x2880) product

(2)

Developed our first three-sided “Borderless” notebook panel product (13.4” WU XPS)

•

Led the high-end market by adopting a new, three-sided borderless design applying low power consumption variable refresh rate technology

(3)

Developed the world’s first 97” OLED TV product

•

Developed a product that outperforms competitors’ products both in display quality and in size in the high-end market

•

Strengthened the global trend towards OLED dominance by expanding our extra-large OLED TV product lineup and secured related original technology

(4)

Developed the world’s first Curved 1,900R Black monitor product (34”)

•

Developed the world’s first IPS Black Curved monitor product (contrast ratio 2000:1) by utilizing nega-LC material

•

Led the high-end Curved product market

(5)

Developed our first 12.3” cluster product utilizing VDA 3D technology

•

Utilizing VDA (Viewing Distance Adaption) technology, developed a 12.3” cluster product that applies glassless 3D technology and changes the user’s viewing distance while driving

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(6)

Developed the world’s first 12.3” cluster product utilizing DLC technology

•

Utilizing DLC (Double LGP Control) technology, developed a 12.3” cluster product which display is, when positioned in the passenger seat, visually recognizable from the passenger seat but not from the driver’s seat.

(7)

Developed the world’s first META technology-applied product (gaming products: 27”, 45”; and television products: 4K 77/65/55”, 8K 77”)

•

Utilizing the development of META OLED technology, entered the gaming monitor market and strengthened flagship leadership in the premium TV market

1) Gaming product (27”, 45”): Secured high PPI luminance performance based on the META technology and provided a display optimized for gaming through high-speed (240 Hz), fast response time (0.03ms) and curved technology

2) Large television (4K/8K): Developed product with world’s best picture quality (luminance/viewing angle) based on META technology

(8)

Developed the world’s first IPS Gaming FHD 480Hz monitor product (24.5”)

•

Applied high-performance Oxide-TFT BCE-4 cell to 480Hz FHD screens

•

Received the 2023 CES Award in Best Innovation / Gaming / Computer Accessory category

Achievements in 2023

(1)

Developed the world’s first small- and medium-sized transparent WOLED product (30” HD)

•

Expanded market coverage with the development of a new product size (30”) for transparent small- and medium-sized display

•

Strengthened market leadership through achieving a transparency rate of 45% and increased luminance (600/200 nit)

(2)

Introduced the world’s first foldable pen touch notebook (17”)

•

Developed OLED panel for notebooks utilizing differentiated technologies such as the tandem OLED and a special folding structure

(3)

Developed the world’s first Gaming OLED 240Hz monitor product (39”, 34”)

•

Applied high-speed (240Hz), fast response time (0.03ms), high-luminance (275 nit @APL 100%) and curved (800R) OLED technology

•

Provided ultra-wide (21:9 aspect ratio) full-size OLED Gaming monitor product (initially provided in 45” and expanded further to provide 39” and 34” products)

Achievements in 2024

(1)

Developed the world’s first Gaming DFR product (31.5”)

•

Optimized display through applying DFR (Dynamic Frequency & Resolution) technology, which enables the implementation of high resolution (UHD 240Hz) and high refresh rate (FHD 480 Hz) on a single display panel

•

Maximized sound effects by applying d-TAS (Display Thin Accurator)

(2)

Developed the world’s first Gaming OLED QHD 480Hz monitor product (27”)

•

Provided optimal gaming environment with the development of the world’s first OLED QHD 480Hz high refresh rate monitor product

(3)

Developed our first ATO-based notebook panel (13.4”)

•

Developed Slim & Light product (1.16t / 162g) through the application of advanced thin OLED structure

•

Developed high-efficiency OLED notebook panel product (SDR 400nit / HDR 500nit) utilizing Tandem OLED technology

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•

Became our first notebook panel model to apply Touch on Encap technology

(4)

Developed our first Dual Resolution Gaming monitor product (27”)

•

Expanded the gaming monitor market and provided differentiated user experience by implementing the Dual Resolution feature

•

Enabled the use of a single monitor for both fast-paced (FHD 330Hz) games and high-resolution (UHD 165Hz) games

* Dual Resolution : UHD 165Hz LOGO FHD 330Hz

(5)

Developed next-generation Micro LED display product (22.3”)

•

Provided a large-screen and high-resolution, new user experience through Active Matrix Micro LED transfer technology, panel technology, compensation technology and mechanical technology

1) 22.3” Module for 136” 4K business-to-consumer products

2) 22.3” Module for infinitely expandable business-to-business products

(6)

Developed the world’s first ultra-large high resolution transparent OLED display product (77”)

•

Developed new television models and lifestyle solutions with ultra-large, high-resolution displays with 45% transparency

(7)

Developed the world’s first large-sized WOLED product based on 4-Stack technology (83/77/65/55/48” 4K television displays)

•

Strengthened the competitiveness of our WOLED flagship models by applying the 4-Stack technology to large-sized WOLED display panels for the first time in the industry

•

Improved customer value by delivering premium picture quality (luminance, color reproduction, and high-speed) while enhancing cost competitiveness

•

Established a foundation for market expansion by strengthening the potential to expand into the new high-end monitor market

10.	Intellectual Property

As of December 31, 2024, our cumulative patent portfolio (including patents that have already expired) included 29,883 patents in Korea and 36,590 patents in other countries. In 2024, we registered 2,106 patents in Korea and 2,717 patents in other countries.

11.	Environmental and Safety Matters

In order to minimize the environmental impact of our business activities, we are actively responding to environmental regulations applicable to our products and business sites.

Business environment management

We have installed and operate various types of prevention facilities to minimize the emission of environmental pollutants generated in our production process. With respect to air and water pollutants, we set and manage our internal standard at 70% of the permitted levels under the regulatory emission standards. In addition, in order to establish a resource circulation system, we operate a proprietary system to monitor waste from its generation to treatment, have developed waste treatment technology and identified suitable recycling companies to reduce the amount of waste we generate and maximize recycling.

In addition, as we were designated a target company for the greenhouse gas emission trading system in 2015, we allocate and monitor our greenhouse gas emissions every year. In order to continually promote the reduction of greenhouse gas emissions, we have set a medium- to long-term goal to reduce the emission level by continually investing in facility improvements and monitoring our emission levels.

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We are subject to a variety of environmental laws and regulations, and operations at our manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Ministry of Environment and local environmental protection authorities. The primary types of environmental laws applicable to us include the following:

(1)

Environmental pollutant emission regulations: Integrated Control of Pollutant-discharging Facilities Act, Clean Air Conservation Act, Water Quality Conservation Act, Wastes Control Act, Environmental Impact Assessment Act, etc.

(2)

Greenhouse gas emission management: Framework Act on Carbon Neutral and Green Growth to Respond to Climate Crisis, Act on the Allocation and Trading of Greenhouse Gas Emission Permits, etc.

(3)

Other workplace environment management: Chemicals Control Act, Chemicals Registration and Evaluation Act, Soil Environment Conservation Act, etc.

Through the implementation of an environmental and energy management system, we are continuously making efforts to minimize environmental impact and reduce energy usage in all aspects of our business process. Accordingly, we have acquired and currently operate the environmental management system ISO14001 and energy management system ISO 50001 certifications for all of our domestic and overseas production sites. In addition, we have established company-wide safety, healthy, energy and environment management policies and manuals, which are regularly updated based on international standards. We also conduct systematic management of our business process in accordance with international standards through annual follow-up and renewal audits.

In recognition of our efforts, we were awarded the highest level, Leadership A, and received the grand prize award at the CDP Water Korea Best Awards in 2016 from the Carbon Disclosure Project, which was presided over by the Carbon Disclosure Project Korea Committee. Since then, we have continued to maintain our excellence in water conservation activities and received Leadership A recognition from 2018 to 2022. In addition, we have also received the Carbon Management Honors Club award from 2017 to 2020 and the Carbon Management Sector Honors from 2016 to 2023 in recognition of our continued greenhouse gas emission reduction activities.

In addition, in recognition of our efforts toward recycling rate improvement and waste reduction, we were nominated as a leading company with an excellent performance in resource circulation and received a commendation from the Minister of Environment in 2020. Our overseas subsidiary in Yantai earned Platinum Zero Waste to Landfill (“ZWTL”) validation in 2021, all of our domestic production facilities earned Gold ZWTL validation, our overseas subsidiary in Nanjing earned Platinum validation in 2022, and our Paju plant earned Platinum validation in June 2024. In 2022, we introduced a resource recirculation recognition program in accordance with the Korean government’s waste management policy and received circular resource certification on eight types of our discarded trays and vinyl. In 2023, we have obtained quality certification for certain of our recycled items recognized as circular resources, and we plan to continue to promote the resource circulation of our products. We will continue our efforts to reinforce our resource circulation program by minimizing waste and maximizing recycling rate.

We have continued to pursue ESG management activities based on the spirit of “value creation for consumers” and “human-first management,” and we plan to obtain further recognition for our eco-friendly management and share relevant information with the stakeholders.

Product environment management

In order to respond to applicable domestic and overseas environmental regulations, such as the European Union’s Restriction of Hazardous Substances (RoHS) and Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that restrict the use of certain hazardous substances, we operate a hazardous substance management program that implements a four-step procedure (each such step, a “Gate”) that manages various stages of our production cycle, beginning with the registration process of our business partners up to the mass production stage. In addition, in order to preemptively address four types of phthalate substances that became additionally regulated pursuant to the RoHS in 2016 and officially went into effect on July 22, 2019, we replaced the latent risk elements in advance as well as implemented a more stable management process with respect to such substances. In implementing this process, we collaborated with external agencies to ascertain regulatory trends and establish our response strategy, and we formulated and applied effective management measures through the collaborative efforts of our development, procurement, quality assurance and analysis teams.

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Gate 01 (Business Partner Stage): An audit is conducted prior to the registration of a new business partner (including the inspection of the business partner’s hazardous substance response process)

•

Gate 02 (Parts Development Stage): An environmental evaluation of each part under development is conducted (consisting of three stages: (1) document review; (2) XRF test and (3) precision analysis)

•

Gate 03 (Product Development Stage): An environmental evaluation of the product model and product labeling are conducted (including RoHS verification)

•

Gate 04 (Mass Production Stage): Process management through the periodic testing of mass-produced parts for any hazardous substances (including rate-based tests based on risk assessment)

We operate a “Hazardous Substance Management System for Products” that effectively manages hazardous substances by classifying them into four levels: A-I, A-II, B-I, and B-II. In particular, in addition to substances prohibited by global hazardous substance regulations on products, we have designated substances causing harm to the human body and the environment as Level B substances. By developing alternative technologies and parts and applying them to our products, we continually strive to achieve a gradual reduction and elimination of non-prohibited hazardous substances.

•

Level A-I (Prohibited Substances): Prohibited substances designated under the RoHS regulations (i.e., 10 regulated substances) and those designated by specific customers

•

Level A-II (Prohibited Substances): Substances prohibited by regulations and conventions other than those covered under Level A-1 and those designated as such by customers

•

Level B-I (Substances Subject to Voluntary Reduction): Substances that are being voluntarily replaced over a certain period of time

•

Level B-II (Substances Under Observation): Substances that are not currently banned, but are expected to become prohibited in the future

Moreover, we participated in reforming IEC 62321, an international testing standard published by the International Electrotechnical Commission and used by RoHS, and the commission adopted our halogen-free combustion ion chromatography method in as IEC 62321-3-2, which was published in June 2013.

In 2017, we became the first display panel company to receive the SGS Eco Label accreditation for OLED television display modules from SGS, a global product testing/accreditation agency, and have since continually received such accreditation. In 2024, such accreditation has been updated to “SGS EEPS accreditation.” In 2022, we expanded our accreditation program to cover display modules for monitors, notebook computers, tablets and automobiles, as a result of which our display modules for monitors and notebook computers received SGS Eco Label accreditation for the first time and our automotive display module became the first in the industry to receive the same accreditation for its excellence in energy efficiency, and we have since maintained the SGS Eco Label for such products. In 2023, our high-end LCD panels for 16-inch notebooks and 27-inch monitors, in which we incorporated recycled materials for the first time, received the SGS Eco Label accreditation. In addition, our 30-inch and 55-inch transparent display products, for which we applied hazardous substance reduction technology, became the first in the industry to receive the SGS Eco Label accreditation. Moreover, in 2022, our 27-inch monitor display product that applied anti-bacterial films received the SGS Performance Mark accreditation for its anti-bacterial performance, and in 2023, our commercial display module that applied Plus-Bright energy consumption reduction technology obtained the SGS Performance Mark accreditation for its energy efficiency performance. Our high-end LCD panels for 16-inch notebooks and 27-inch monitors also received the same accreditation for reducing energy consumption through the implementation of proprietary algorithms and improving panel transmittance.

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Also in 2022, upon assessment and verification of GHG emissions throughout its entire product life cycle, our OLED TV panel received the industry’s first Carbon Footprint Certification from The Carbon Trust, a not-for-profit company founded by the United Kingdom government that provides voluntary carbon certification services and carbon labeling schemes. In 2023, our high-end IT LCD panels (27-inch and smaller) received the Product Carbon Footprint (PCF) certification from TÜV Rheinland, a global independent testing, inspection and certification agency, by achieving carbon emission reduction through the application of recycled materials and low energy consumption technologies. Our OLED panels for automotive products also received the same certification for achieving carbon emission through the application of light-control film integration technology. In 2024, our 14-inch high-end LCD panel product for notebook computers received the Product Carbon Footprint Reduction (PCR) certification from TÜV Rheinland through the application of bio-plastic, recycled materials and ultra-precision micro-processing technology. Additionally, upon verification by Underwriters Laboratories (UL), a global inspection and certification agency, such display panel also received the Environmental Claim Validation (ECV) certification.

In 2021, we received the “Green Technology Certification” for our advanced incell touch display technology, an eco-friendly technology with touch-sensing electrodes and transmission lines that reduce carbon emissions and the use of rare metals. Also, since 2021, we have continued to obtain an eco-friendly certification from TUV SUD, a globally recognized accreditation agency, for excellence in resource circulation and non-use of specific hazardous substances in our display panels for OLED televisions, OLED tablets, and PO mobile models and smartwatches.

In 2018, we became the first display panel company to receive the “Green Technology Certification” from the Korean Ministry of Science and ICT for improving the light efficiency technology of OLED to promote energy use reduction. In 2017, for the IPS Nano Color for LCD, we received the Quality & Performance Mark from Intertek, a global product testing/accreditation agency, by applying a technology to eliminate cadmium (Cd) and indium phosphide (InP).

Safety standards

Our products comply with the IEC 62638-1 global product safety standards, and we obtain CB and UL certifications on applicable products.

In order to promote the enhancement of safety for automobile manufacturers and consumers, we became the first display panel company in June 2016 to introduce a flame-resistant certification program for our display panels, which program includes flame resistance standards for automotive materials (including ISO 3795, DIN 75200 and FMVSS 302 standards) as well as for safety standards for information technology devices, which has been certified by TUV SUD. In 2022, we expanded the number of applicable flame resistance standards for such program from three to nine.

Furthermore, in 2021, we established infrastructure for flammability tests required under the United States Federal Aviation Administration’s FAR 25.853 standards and impact tests under RTCA DO-313 standards, and the reliability of these test results have been certified by TUV SUD.

Green management

Pursuant to the Framework Act on Carbon Neutral and Green Growth to Respond to Climate Crisis, the Korean government implemented a greenhouse gas emission and energy consumption target system from 2011 to 2014 and, since 2015, it has implemented a greenhouse gas trading system, under which we are responsible to meet our emission targets based on the emission credits allocated to us by the Ministry of Environment. As a result, we have been investing in additional equipment and there may be other costs associated with meeting reduction targets, which may have a negative effect on our profitability or production activities.

In connection with the greenhouse gas emission and energy reduction target system, we submitted a statement of our 2023 domestic emissions and energy usage to the Korean government in March 2024 after it was certified by DNV Business Assurance Korea, a government-designated certification agency. The table below sets forth yearly levels of our greenhouse gases emissions and energy usage in the statement submitted to the Korean government:

(Unit: thousand tons of CO2 equivalent; Tetra Joules)


Category	2023		2022		2021
Greenhouse gases		3,492		3,842		4,784
Energy		55,119		60,589		60,927

Note: Our greenhouse gas emission and energy usage data have been confirmed upon assessment by the Ministry of Environment.

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The decrease in greenhouse gas emissions in 2023 compared to 2022 was due to changes in production volume and the introduction of a reduction facility that decomposes fluorinated greenhouse gases used in our manufacturing process, resulting in an overall decrease in emission levels.

Since our designation as a target company for the greenhouse gas emission trading system in 2015, we have received greenhouse gas emission allowances from the government and at the same time submit our greenhouse gas emission calculations and specifications to the government every year. In order to continually promote the reduction of greenhouse gas emissions, we have set a mid-term goal to reduce the emission level from 2018 to 2030 by 53% and a medium- to long-term goal to achieve carbon neutrality by 2050. In order to reduce greenhouse gas emissions, we plan to develop high-efficiency process gas scrubbers and low-carbon alternative gas technologies, strengthen company-wide power-saving activities and accelerate the transition to renewable energy. In addition to internal reduction efforts, in order to achieve carbon neutrality by 2050, we plan to externally offset residual emissions that are difficult to reduce technically. In addition, through our ESG governance (including ESG committee/management meetings), we will regularly monitor and report our carbon-neutral implementation progress to strengthen our execution capabilities and continually upgrade our roadmap to achieve carbon neutrality by 2050.

In order to reduce fluorinated gases (F-Gas) used in the dry etching process in our manufacturing operations, we have invested approximately 51 billion since 2018 to install plasma equipment, which can reduce emissions of such gas by over 90%, on our manufacturing sites. As a result, in 2023, we were able to reduce greenhouse gas emissions caused by our manufacturing processes in Korea by 0.6 million tons. In addition, in line with the renewable energy utilization program in Korea, which was initiated in 2021, our domestic business sites are shifting to renewable energy through the green premium program, while our overseas business sites in China and Vietnam are shifting to renewable energy through Renewable Energy Certificate (REC) purchases. In 2023, we converted 1,159 GWh of electricity (approximately 15% of our total electricity) to renewable energy. In addition, to promote effective energy reduction, we have established a dedicated organization focused on energy conservation. By adopting various initiatives such as utilizing waste heat from Clean Dry Air (CDA) compressors to manufacture cold water and improve refrigerator efficiency, we saved 809 GWh of electricity in 2023, resulting in the reduction of greenhouse gas emissions by 0.4 million tons.

Status of sanctions

Date

Sanctioning
Authority

Classification of
Sanctioning
Authority

Target

Description and
Relevant Laws

Sanctions

Imposed

Implementation
Status

April 4, 2022

Han River Basin Environmental Office

Administrative Agency

Company

—Failure to file a subcontract report pertaining to the handling of hazardous chemical materials

—Provision 1 of Article 31 of the Chemical Control Act and other applicable law

Fine of 2.4 million

—Paid fine

—Established procedures for the management of subcontract reporting

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April 13, 2022

Goyang Branch of Ministry of Employment and Labor

Administrative Agency

Company

—Delay in reporting a safety incident dated February 12, 2022

—Provision 3 of Article 57 of the Occupational Safety and Health Act and other applicable law

Fine of 5.6 million

—Paid fine

—Provided a company-wide notice and training regarding standards for immediate reporting of incidents.

—Took personnel actions relating to relevant employees

May 16, 2022

Goyang Branch of Uijeongbu District Court

Court

Company and one officer (former Executive Director and former On-site Safety Manager)

—Deficiencies spotted during a regular inspection of facility (from March 29 to April 2, 2021) following industrial accident at the site

—Article 173-2, Article 168-1, Provision 1 or 3 of Article 38, and Provision 1 of Article 39 of the Occupational Safety and Health Act

Fine of 5 million to each of Company and officer

—Paid fine

—Strengthened safety management standards and training program

December 15, 2022

Ministry of Environment

Administrative Agency

Company

—Failure to timely submit a notice of reason for cancelling the allocation of emission rights by December 15, 2022

—Provision 2 of Article 17 of the Act on the Allocation and Trading of Greenhouse-gas Emission Permits

Fine of 1.6 million

—Paid fine

—Shutdown the production site and regular monitoring of changes in emission (once per month)

January 19, 2023

Goyang Branch of Uijeongbu District Court

Court

Company

—Safety incident on January 13, 2021 (fine announced on January 11, 2023, ruling confirmed on January 19, 2023)

Fine of 20 million

—Paid fine

—Strengthened safety management standards and training program

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November 13, 2023

Southern Seoul Branch of Ministry of Employment and

Labor

Administrative Agency

Company

—Non-payment of overtime pay

—Provision 1 of Article 43 and Article 36 of the Labor Standards Act

—

—Implemented corrective orders, which were completed on November 27, 2023

December 16, 2023

Uijeongbu District

Court

Employee

(Facility plant manager, Incumbent, 30 years of service)

—Safety incident on January 13, 2021 (fine announced on December 8, 2023, ruling confirmed on December 16, 2023)

Fine of

5 million

—Paid fine

March 22, 2024

Supreme Court

Court

Two employees

(former Team Leader and former Manager)

—Safety incident on January 13, 2021 (final appeal dismissed on March 15, 2024, ruling confirmed by the Appellate Court on March 22, 2024)

Final appeal dismissed

(1 year of imprisonment subject to two years of probation for both the Team Leader and Manager)

—

In January 2021, an incident involving a leakage of tetramethylammonium hydroxide chemicals occurred during refurbishment of equipment at one of our plants in Paju, causing bodily harm to workers. In December 2021, we and certain of our employees were prosecuted for violating the Occupational Safety and Health Act and the Chemicals Control Act. In January 2023, the Goyang Branch of the Uijeongbu District Court ordered a fine of 20 million. The prosecution filed an appeal with respect to several of the prosecuted employees, which was dismissed by the Seoul Appellate Court on December 8, 2023. In addition, the judgment against the remaining defendants, including one of our employees but excluding two of our employees who filed a final appeal with the Supreme Court, was confirmed on December 16, 2023. The final appeals of the two employees were dismissed on March 15, 2024, and the Appellate Court’s ruling was confirmed on March 22, 2024. In order to prevent recurrence, we are exerting continual efforts to treat safety as a top priority management objective, including by strengthening our safety management standards and employee training efforts.

In April 2022, the Han River Basin Environmental Office ordered a fine of 2.4 million on us for a violation of Provision 1 of Article 31 of the Chemical Control Act and other applicable law. We paid the fine and established procedures to manage scheduling and documentation and guarantee timely subcontract declaration that follows regulations by the department in charge.

In April 2022, following a relevant department’s delay in reporting an industrial accident (dated February 12, 2022) to the company by over a month, we were assessed a fine of 5.6 million for a violation of Provision 3 of Article 57 of the Occupational Safety and Health Act and other applicable law. We paid the fine and provided a company-wide notice and training to promote immediate reporting upon the occurrence of similar incidents and to prevent such delays in the future. We also took personnel actions relating to relevant employees.

In May 2022, after a regular facility inspection following an industrial accident at the site, the trial court (Goyang Branch of Uijeongbu District Court) ordered a fine of 5 million on each of us and one employee (former Executive Director and former On-site Safety Manager) for a violation of certain provisions of the Occupational Safety and Health Act. We are strengthening our safety management standards and employee training program to prevent industrial accidents.

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On December 15, 2022, under Provision 2 of Article 17 of the Act on the Allocation and Trading of Greenhouse-gas Emission Permits, the Ministry of Environment ordered a fine of 1.6 million on us for failure to timely submit a report on the cancellation of allocation of emission rights (when a designated business entity shuts down a part or the entirety of its production site and if the such site’s greenhouse gas emission is less than 50% of the allocated quota due to the closure, shutdown, or discontinuation of operation of its facilities, the designated business shall report to a relevant agency within a month of such shut down). We paid the fine and established procedures to prevent the recurrence of similar events, including regular monthly monitoring of site closures and changes in emissions.

On May 19, 2023, an incident resulting in the death of one of our employees occurred, and we subsequently became subject to a non-periodic inspection by the Southern Branch Office of the Seoul Regional Employment and Labor Office. As a result of the labor inspection, we and our former CEO were alleged to have violated Article 53 of the Labor Standards Act on October 6, 2023, and the Southern Branch Office of Ministry of Employment and Labor conducted an investigation, which was completed on October 22, 2024 without any prosecution. In addition, on November 13, 2023, we had received a corrective order from the Southern Branch Office of the Seoul Regional Employment and Labor Office to pay 239,743,773 in overtime wages to the relevant employees for violations of Article 36 and Provision 1 of Article 43 of the Labor Standards Act. On November 27, 2023, we had fulfilled the corrective order, and accordingly, we do not expect to be charged with any further penalties in relation to the corrective order. In the case of a corrective order, when such order is fulfilled, the case becomes concluded at the labor office level, and the labor office does not pursue further criminal action. In order to prevent the recurrence of similar events, we have established a special committee to improve the culture of our organization and have continued to implement ongoing remedial measures including the reorganization of our employee attendance system.

12.	Financial Information

Financial highlights (Based on consolidated K-IFRS).

Note: The financial information below is based on our consolidated financial statements which remain subject to approval at our upcoming annual general meeting of shareholders scheduled on March 20, 2025. If our financial statements are not approved at such annual general meeting of shareholders or otherwise become amended, we will disclose such matter and the reasons therefor in an amended report.

(Unit: In millions of Won)


Description	As of December 31, 2024			As of December 31, 2023		As of December 31, 2022
Current assets		10,123,037			9,503,186		9,444,035
Quick assets		7,451,795			6,975,458		6,571,117
Inventories		2,671,242			2,527,728		2,872,918
Non-current assets		22,736,529			26,256,112		26,241,984
Investments in equity accounted investees		33,177			84,329		109,119
Property, plant and equipment, net		17,202,873			20,200,332		20,946,933
Intangible assets		1,558,407			1,773,955		1,752,957
Other non-current assets		3,942,072			4,197,496		3,432,975
Total assets		32,859,566			35,759,298		35,686,019
Current liabilities		15,859,084			13,885,028		13,961,520
Non-current liabilities		8,927,675			13,103,726		10,405,272
Total liabilities		24,786,759			26,988,754		24,366,792
Share capital		2,500,000			1,789,079		1,789,079
Share premium		2,773,587			2,251,113		2,251,113
Retained earnings		(18,512	)		2,676,014		5,359,769
Other equity		995,823			515,976		479,628
Accumulated other comprehensive income held for sale		291,363			—		—
Non-controlling interest		1,530,546			1,538,362		1,439,638
Total equity		8,072,807			8,770,544		11,319,227

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(Unit: In millions of Won, except for per share data and number of consolidated entities)


Description	For the year ended December 31, 2024			For the year ended December 31, 2023			For the year ended December 31, 2022
Revenue		26,615,347			21,330,819			26,151,781
Operating profit (loss)		(560,596	)		(2,510,164	)		(2,085,047	)
Profit (loss) from continuing operations		(2,409,300	)		(2,576,729	)		(3,195,585	)
Profit (loss) for the period		(2,409,300	)		(2,576,729	)		(3,195,585	)
Profit (loss) attributable to:
Owners of the company		(2,562,606	)		(2,733,742	)		(3,071,565	)
Non-controlling interest		153,306			157,013			(124,020	)
Basic earnings (loss) per share(1)		(5,438	)		(7,177	)		(8,064	)
Diluted earnings (loss) per share(1)		(5,438	)		(7,177	)		(8,064	)
Number of consolidated entities(2)		22			22			22

(1)

(2)	The number of consolidated entities is based on the consolidated entities (including the parent company) as of the end of the reporting period.

Financial highlights (Based on separate K-IFRS).

Note: The financial information below is based on our separate financial statements which remain subject to approval at our upcoming annual general meeting of shareholders scheduled on March 20, 2025. If our financial statements are not approved at such annual general meeting of shareholders or otherwise become amended, we will disclose such matter and the reasons therefor in an amended report.

(Unit: In millions of Won)


Description	As of December 31, 2024			As of December 31, 2023		As of December 31, 2022
Current assets		8,647,395			5,590,482		5,627,177
Quick assets		6,860,717			3,809,523		3,702,583
Inventories		1,786,678			1,780,959		1,924,594
Non-current assets		21,151,656			24,141,930		23,631,862
Investments		3,939,474			4,932,063		4,837,704
Property, plant and equipment, net		11,913,336			13,584,247		14,044,844
Intangible assets		1,485,789			1,683,029		1,635,181
Other non-current assets		3,813,057			3,942,591		3,114,133
Total assets		29,799,051			29,732,412		29,259,039
Current liabilities		20,865,495			16,422,259		16,043,011
Non-current liabilities		5,137,758			7,628,598		5,865,589
Total liabilities		26,003,253			24,050,857		21,908,600
Share capital		2,500,000			1,789,079		1,789,079
Share premium		2,821,006			2,251,113		2,251,113
Retained earnings		(1,525,208	)		1,641,363		3,310,247
Other equity		0			0		0
Total equity		3,795,798			5,681,555		7,350,439

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(Unit: In millions of Won, except for per share data)


Description	For the year ended December 31, 2024			For the year ended December 31, 2023			For the year ended December 31, 2022
Revenue		25,178,688			19,811,015			24,131,172
Operating profit (loss)		(1,800,625	)		(3,884,121	)		(3,201,463	)
Profit (loss) from continuing operations		(3,034,736	)		(1,718,701	)		(3,191,387	)
Profit (loss) for the period		(3,034,736	)		(1,718,701	)		(3,191,387	)
Basic earnings (loss) per share(1)		(6,440	)		(4,512	)		(8,379	)
Diluted earnings (loss) per share(1)		(6,440	)		(4,512	)		(8,379	)

(1)

Consolidated subsidiaries (as of December 31, 2024)


Company Interest	Primary Business	Location	Equity
LG Display America, Inc.	Sales	U.S.A.		100	%
LG Display Germany GmbH	Sales	Germany		100	%
LG Display Japan Co., Ltd.	Sales	Japan		100	%
LG Display Taiwan Co., Ltd.	Sales	Taiwan		100	%
LG Display Nanjing Co., Ltd.	Manufacturing	China		100	%
LG Display Shanghai Co., Ltd.	Sales	China		100	%
LG Display Guangzhou Co., Ltd.(1)	Manufacturing	China		100	%
LG Display Shenzhen Co., Ltd.	Sales	China		100	%
LG Display Singapore Pte. Ltd.	Sales	Singapore		100	%
L&T Display Technology (Fujian) Limited	Manufacturing and sales	China		51	%
LG Display Yantai Co., Ltd.	Manufacturing	China		100	%
Nanumnuri Co., Ltd.	Workplace services	Korea		100	%
LG Display (China) Co., Ltd.(1)(2)	Manufacturing and sales	China		80	%
Unified Innovative Technology, LLC	Managing intellectual property	U.S.A.		100	%
LG Display Guangzhou Trading Co., Ltd.	Sales	China		100	%
Global OLED Technology LLC	Managing intellectual property	U.S.A.		100	%
LG Display Vietnam Haiphong Co., Ltd.	Manufacturing and sales	Vietnam		100	%
Suzhou Lehui Display Co., Ltd.	Manufacturing and sales	China		100	%
LG Display Fund I LLC(3)	Investing in new emerging companies	U.S.A		100	%
LG Display High-Tech (China) Co., Ltd.	Manufacturing and sales	China		70	%

(1)

On September 26, 2024, we entered into a contract to sell our 80% equity interest in LG Display (China) Co., Ltd. and 100% equity interest in LG Display Guangzhou Co., Ltd. As a result, the assets and liabilities related to LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. have been reclassified as assets and liabilities held for sale.

(2)	During the reporting period, we acquired an additional 10% equity interest in LG Display (China) Co., Ltd. for 245,362 million.

(3)	During the reporting period, we invested an additional 6,831 million in LG Display Fund I LLC.

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Status of equity investments in associates (as of December 31, 2024)


Company	Carrying Amount (in millions)		Date of Incorporation		Equity Interest
Paju Electric Glass Co., Ltd.		29,479		January 2005		40	%
Wooree E&L Co., Ltd.(1)		—		June 2008		—
YAS Co., Ltd.(1)		—		April 2002		—
Avatec Co., Ltd.(1)		—		August 2000		—
Arctic Sentinel, Inc.		—		June 2008		10	%
Cynora GmbH		—		March 2003		10	%
Material Science Co., Ltd.(2)		3,698		January 2014		14	%

(1)	Due to the loss of our significant influence during the reporting period, our investments in such investees have been reclassified from investment in associates to financial assets at fair value through profit or loss.

(2)	During the reporting period, our equity interest in Material Science Co., Ltd. decreased from 16% to 14% due to a decrease in the investee’s treasury shares.

Although our respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, we are able to exercise significant influence through our right to appoint a director to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

For the years ended December 31, 2024 and 2023, the aggregate amount of dividends we received from our affiliated companies was 200 million and 15,200 million, respectively.

13.	Audit Information

Audit service

(Unit: In millions of Won, hours)


Description	2024	2023	2022
Auditor	Samil PwC	KPMG Samjong	KPMG Samjong
Activity	Audit by independent auditor	Audit by independent auditor	Audit by independent auditor
Compensation(1)	1,800 (650)(2)	1,640 (590)(2)	1,557 (575)(2)
Time required(3)	23,430	21,246	21,238

(1)	Compensation amount is the contracted amount for the full fiscal year.

(2)	Compensation amount in ( ) is for Form 20-F filing and SOX 404 audit.

(3)	Figures are based on actual performance as of the date of this report.

Non-audit service


Period	Date of contract	Description of service	Period of service	Compensation
2024	February 2024	Tax advice	March 2024 ~ December 2024	50 million
	September 2024	Tax advice	September 2024 ~ March 2025	0 million
2023	—	—	—	—
2022	—	—	—	—

*	Based on direct contracts on a separate basis.

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14.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Risk relating to forward-looking statements

This annual report contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect our current views as of the date of this report with respect to future events and are not a guarantee of future performance or results. Actual results may differ materially from information contained in the forward-looking statements as a result of a number of factors beyond our control. We have no obligation to update or correct the forward-looking statements contained in these materials subsequent to the date hereof. All forward-looking statements attributable to us in this report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.

Overview

Due to continued volatility in the external environment, sluggish demand for downstream products continued to persist in 2024. Uncertainty in the global economy and the resulting demand downturn impacted all product categories; however, through our continued efforts to enhance our OLED-focused business structure, our revenue increased by 25% to 26.6 trillion in 2024 compared to 2023. In addition, by implementing structural cost reductions and improving operational efficiency, we reduced our operating loss by approximately 2 trillion compared to 2023, recording an operating loss of 560.6 billion in 2024. As a result, our EBITDA (which represents the sum of operating profit (loss), depreciation expenses and amortization expenses) increased significantly from 1.7 trillion in 2023 to 4.6 trillion in 2024.

As unfavorable macroeconomic conditions with delayed demand recovery due to sluggish downstream market conditions persisted, and as significant shifts in global trade dynamics emerged, the market experienced an unprecedented level of volatility. In response, we have been strengthening our performance stability by discontinuing our production of LCD television panels, which is highly sensitive to market volatility, and enhancing our business structure by increasing the proportion of differentiated high-end OLED products across all of our product categories.

With respect to our large-sized OLED business, we have been strengthening our profit base through cost structure reforms and flexible operation of our production capacity, with the goal of gradually enhancing our profitability over time. In the medium-sized display business, we plan to continue to reinforce the stability of our business framework through a differentiated product portfolio, including panels applying tandem OLED technology, which offer not only higher resolution but also lower power consumption and longer lifespan, and high-end and business-to-business-focused LCD panels, as well as strategic partnerships with global customers.

For the small-sized display business, we have continued to strengthen our position in the high-end display market by expanding our production capacity and enhancing our development expertise to gain customer trust. Going forward, we plan to further strengthen our business competitiveness through ongoing improvements in productivity and cost reform initiatives. In the automotive display business, we plan to continue pursuing both growth and profitability by leveraging differentiated products, technology and customer portfolio, with a focus on securing new orders and expanding our sales.

Based on the efforts and strategies mentioned above, we have been securing stable customer relationships with top-tier global customers while reinforcing our technological leadership, and have continued to improved our business performance. Our OLED business accounted for 40% of our total revenue in 2022, 48% in 2023 and 55% in 2024, and we expect its proportion to continue to increase in the future.

Through our business structure enhancement strategy, we have been continuing to strive to enhance performance stability while also strengthening our financial soundness. We continue to pursue intensive and ongoing cost reform initiatives across our production and operations, while also improving our cash flow levels by reducing our investment in facilities and disposing of non-strategic assets, such as the LCD television panel business. In response to macroeconomic uncertainties, we have been taking a cautious approach to new expansion investments, prioritizing the full utilization of our existing infrastructure. Accordingly, we reduced our capital expenditures under this strategy, from the low 5 trillion range in 2022 to the mid 3 trillion range in 2023, and further to the low 2 trillion range in 2024.

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Financial condition and results of operations

(1)

Changes in Political, Economic, Social, Competitive and Regulatory Environment

Our industry is subject to cyclical fluctuations, including recurring periods of capacity increases, that may adversely affect our results of operations.

Display panel manufacturers are vulnerable to cyclical market conditions. Intense competition and expectations of growth in demand across the industry may cause display panel manufacturers to make additional investments in manufacturing capacity on similar schedules, resulting in a surge in capacity when production is ramped up at new fabrication facilities. During such surges in capacity growth, as evidenced by past experiences, customers can exert strong downward pricing pressure, resulting in sharp declines in average selling prices and significant fluctuations in the panel manufacturers’ gross margins. Conversely, demand surges and fluctuations in the supply chain can lead to price increases.

We address overcapacity issues by, in the short-term, adjusting the utilization rates of our existing fabrication facilities based on our assessment of industry inventory levels and demand for our products and, in the mid- to long-term, by fine-tuning our investment strategies relating to product development and capacity growth in light of our assessment of future market conditions.

In recent years, the display panel industry has experienced overcapacity relative to the general demand for display panels driven by uncertainties in the global economic environment. However, in light of our ongoing efforts to increase in our product mix the proportion of medium- and small-sized OLED panels which have a higher average revenue per square meter of net display area than large-sized panels, coupled with the depreciation of the Korean Won against the U.S. dollar, our average revenue per square meter of net display area increased by 33.1% to 1,103,379 in 2023. However, despite the increase in production volume due to the expansion in production capacity of our mobile products and the depreciation of the Korean Won against the U.S. dollar, our average revenue per square meter of net display area decreased by 2.5% to 1,075,879 in 2024, mainly due to the lack of a meaningful recovery in overall demand and weak demand for IT products.

While we believe that overcapacity and other cyclical issues in the industry are best addressed by increasing the proportion of high margin, differentiated products based on newer technologies that are tailored to our customers’ evolving requests, we cannot provide any assurance that an increase in demand, which helped to mitigate the impact of industry-wide overcapacity in the past, will occur or continue in the future. We will respond to the overcapacity issues in the industry through close monitoring. However, construction of new fabrication facilities and other capacity expansion projects in the display panel industry are undertaken over an extended period of time. Therefore, even if overcapacity issues persist in the industry, there may be continued capacity expansion in the near future due to pre-determined capacity projects in the industry that were undertaken in past years. Any significant industry-wide capacity increases that are not accompanied by a sufficient increase in demand could further drive down the average selling price of our panels, which would negatively affect our results of operations.

Any decline in prices may be compounded by a seasonal weakening in demand growth for end products such as personal television, IT, mobile and other devices. Furthermore, once the differentiated products that had a positive impact on our performance mature in their technology cycle, if we are not able to develop and commercialize newer products to offset the price erosion of such maturing products in a timely manner, our ability to counter the impact of cyclical market conditions on our gross margins may be further limited. Future downturns resulting from any large increases in capacity or other factors affecting the industry may have a material adverse effect on our business, financial condition and results of operations.

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When there is deterioration in market conditions, we may record impairment losses of our tangible and intangible assets. In 2022, due to increased volatility in the display industry market as a result of deteriorating and uncertain global economic conditions, we performed impairment tests for tangible and intangible assets related to our large-size OLED panel business. We cannot provide any assurance that we will not have to record additional impairment losses of tangible or intangible assets in light of any future economic downturns that may materially and negatively impact our financial condition and results of operations.

A global economic downturn may result in reduced demand for our products and adversely affect our profitability.

In recent years, an economic downturn caused by difficulties affecting the global financial sectors, adverse conditions and volatility in the worldwide credit and financial markets, and fluctuations in oil and commodity prices have collectively increased the uncertainty of economic prospects in general and have adversely affected the global and Korean economies. The recent global economic downturn has adversely affected demand for consumer products featuring display panels manufactured by our customers in Korea and overseas, including televisions, IT products (comprising notebook computers, desktop monitors and tablets), mobile products, automobiles and other devices utilizing display panels, which in turn may lead them to reduce or plan reductions of their production. Any decline in demand for display panel products may adversely affect our business, results of operations and/or financial condition.

Earthquakes, tsunamis, floods, infectious diseases and other natural calamities could materially and adversely affect our business, results of operations or financial condition.

As our main production facilities are concentrated in Korea, China and Vietnam and we are heavily dependent on certain countries including Korea, Japan and the United States for our major equipment, components and raw materials, any natural calamity that escalate in such regions may have an impact on our production. Our supply chain is generally concentrated in Northeast Asia, and there may be delays in the supply of raw materials, components and manufacturing equipment as well as disruptions in our production levels if unforeseen natural calamities occur in the future.

The average selling prices of display panels have declined in general with time irrespective of industry-wide cyclical fluctuation and if the average selling prices of our panels decrease faster than the speed at which we are able to reduce our manufacturing costs, it could adversely affect our profit.

The average selling prices of display panels have generally declined and are expected to continue to decline over time due to various factors including technological advancements and cost reductions. Although we may be able to take advantage of the higher selling prices typically associated with new products and technologies when they are first introduced in the market, such prices may decline over time, and in some cases very rapidly, as a result of market competition or otherwise, and we may face difficulty in setting prices at levels that allow for sufficient margins. For example, our gross profit margin decreased from 4.3% in 2022 to 1.6% in 2023, but increased to 9.7% in 2024. If we are unable to effectively anticipate and counter the price erosion that accompanies our products, or if the average selling prices of our panels decrease faster than the speed at which we are able to reduce our manufacturing costs, our gross margin would decrease and our results of operations and financial condition may be materially and adversely affected.

We operate in a highly competitive environment and we may not be able to sustain our current market position.

The display panel industry is highly competitive. We have experienced pressure on the prices and margins of our major products due largely to additional capacity from panel makers in Korea, Taiwan, China and Japan.

The market share of Chinese display panel manufacturers has rapidly increased over the recent years, as a result of large investments in production facilities and mass production of lower-priced panels through various support provided by the Chinese government. In addition, in 2023, competitors in China and other regions have announced new plans for investment in OLED manufacturing facilities and technologies. As a result, competition in the industry may further intensify due to such additional investment decisions made by our competitors.

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Some of our competitors may currently, or at some point in the future, have stronger financial positions and/or greater sales and marketing, manufacturing, research and development or technological resources than we do. In addition, our competitors may be able to manufacture panels on a larger scale or with greater cost efficiencies than we do and we anticipate increases in production capacity in the future by other display panel manufacturers using similar display panel technologies as us. Any price erosion resulting from strong global competition or additional industry capacity may materially affect our financial condition and results of operations.

In addition, consolidation within the industry in which we operate may result in increased competition as the entities emerging from such consolidation may have greater financial, manufacturing, research and development and other resources than we do, especially if such mergers or consolidations result in vertical integration and operational efficiencies.

Our ability to compete successfully also depends on factors both within and outside our control, including product pricing, performance and reliability, our relationship with customers, successful and timely investment and product development, success or failure of our end-brand customers in marketing their brands and products, component and raw material supply costs, and general economic and industry conditions. We cannot provide assurance that we will be able to maintain a competitive advantage with respect to all these factors and, as a result, we may be unable to sustain our current market position.

Our ability to compete successfully depends on many factors, including the price of our products, execution capability, reliability, customer relationship, effective and timely investment and product development, successful marketing of our customers’ products that feature our panels, cost of raw materials and component parts, and general industry and economic conditions. We may be able to control some of these factors, but there are factors that are outside of our control. We cannot provide assurance that we will gain a competitive advantage in this environment, and we may not maintain our current status in the market.

One should not rely on period-to-period comparisons to predict our future performance as our results of operations may fluctuate significantly from period to period.

Our industry is affected by market conditions that are often outside the control of manufacturers. Our results of operations may fluctuate significantly from period to period due to a number of factors, including seasonal variations in consumer demand, capacity ramp-up by competitors, industry-wide technological changes, the loss of a key customer and the postponement, rescheduling or cancellation of large orders by a key customer, any of which may or may not reflect a continued trend from one period to the next. As a result of these factors and other risks discussed in this section, you should not rely on period-to-period comparisons to predict our future performance.

Our financial condition may be adversely affected if we cannot introduce new products to adapt to rapidly evolving customer needs on a timely basis.

Our success will depend greatly on our ability to respond quickly to rapidly evolving customer requirements and to develop and efficiently manufacture new and differentiated products in anticipation of future demand. A failure or delay on our part to develop and efficiently manufacture products of such quality and technical specifications that meet our customers’ evolving needs may adversely affect our business.

Close cooperation with our customers to gain insights into their product needs and to understand general trends in the end-product market is a key component of our strategy to produce successful products. In addition, when developing new products, we often work closely with equipment suppliers to design equipment that will make our production processes for such new products more efficient. If we are unable to work together with our customers and equipment suppliers, or to sufficiently understand their respective needs and capabilities or general market trends, we may not be able to introduce or efficiently manufacture new products in a timely manner, which may have a material adverse effect on our financial situation.

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In addition, product differentiation, especially the ability to develop and market differentiated products that command higher prices in a timely manner, has become a key competitive strategy in the display panel market. This is because the growth in demand is led by a timely introduction of end products with specifications tailored to the customers’ needs and employing newer technologies at appropriate price levels. Accordingly, we have focused our efforts on developing and marketing differentiated specialty products, such as META technology-applied transparent OLED display panels and gaming-specialized display panels. We also strive to deliver differentiated values to meet our consumers’ demand for various display panels including (i) panels utilizing ultra-high definition, or Ultra HD, technology with low-power consumption oxide TFT backplanes, (ii) Advanced High-Performance In-Plane Switching, or AH-IPS, panels for tablet computers, notebook computers, desktop monitors, and (iii) plastic OLED display panels for smartphones, automotive products and wearable devices.

We have developed sales and marketing strategies to respond to an increase in demand for differentiated new products in consumer electronics and other markets. However, we cannot provide assurance that the differentiated products we develop and market will be responsive to our end customers’ needs nor that our products will promote market growth in consumer electronics or other markets.

Problems with product quality, including defects, in our products could result in a decrease in customers and sales, unexpected expenses and loss of market share.

Our products are manufactured using advanced, and often new, technology and must meet stringent quality requirements. Products manufactured using advanced and new technology, such as our OLED technology, may contain undetected errors or defects, especially when first introduced. For example, our latest display panels may contain defects that are not detected until after they are shipped or installed because we cannot test for all possible scenarios. Such defects could cause us to incur significant re-designing costs, divert the attention of our technology personnel from product development efforts and significantly affect our customer relations and business reputation. In addition, future product failures could cause us to incur substantial expense to repair or replace defective products.

We recognize a provision for warranty obligations based on the estimated costs that we expect to incur under our basic limited warranty for our products, which covers defective products and is normally valid for a certain period from the date of purchase. The warranty provision is largely based on historical and anticipated rates of warranty claims, and therefore we cannot provide assurance that the provision would be sufficient to cover any surge in future warranty expenses that significantly exceed historical and anticipated rates of warranty claims. In addition, if we deliver products with errors or defects, or if there is a perception that our products contain errors or defects, our credibility and the market acceptance and sales of our products could be harmed. Widespread product failures may damage our market reputation and reduce our market share and cause our sales to decline.

If economic conditions in Korea deteriorate, our current business and future growth could be materially and adversely affected.

Developments that could have an adverse impact on Korea’s economy include:

•

declines in consumer confidence and a slowdown in consumer spending;

•

increase in product manufacturing and service costs and decrease in purchasing power due to inflation;

•

deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy (such as the ongoing trade disputes with Japan);

•

adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of deteriorating economic and trade relations between the United States and China and increased uncertainties resulting from the United Kingdom’s exit from the European Union;

•

the occurrence of severe health epidemics in Korea and other parts of the world, such as the ongoing COVID-19 pandemic;

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•

adverse changes or volatility in foreign currency reserve levels, commodity prices (including oil prices), exchange rates (including fluctuation of the U.S. dollar, Euro or Japanese Yen exchange rates or revaluation of the Chinese Yuan, as well as the impact from the United Kingdom’s exit from the European Union on the value of Korean Won), interest rates, inflation rates or stock markets;

•

increased sovereign default risk in select countries and the resulting adverse effects on the global financial markets;

•

a deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea due to the Korean government’s policies to increase minimum wages and limit working hours of employees;

•

investigations of large Korean business groups and their senior management for possible misconduct;

•

a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea;

•

a shortage in imported raw materials, natural resources, rare-earth minerals or components, such as semiconductors, due to disruptions in the global supply chain;

•

the economic impact of any pending free trade agreements or changes in existing free trade agreements;

•

social and labor unrest;

•

volatility in the market prices of Korean real estate;

•

a decrease in tax revenues or a substantial increase in the Korean government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, including in connection with the Korean government’s ongoing efforts to provide emergency relief payments to households and emergency loans to businesses in light of economic difficulties caused by COVID-19, which may lead to an increased government budget deficit as well as an increase in the government’s debt level;

•

financial problems or lack of progress in the restructuring of Korean business groups, other large troubled companies, their suppliers or the financial sector;

•

loss of investor confidence arising from corporate accounting irregularities or corporate governance issues at certain Korean companies;

•

increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea;

•

a continued decrease in the population and birthrates in Korea;

•

geo-political uncertainty and risk of further attacks by terrorist groups around the world;

•

natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners;

•

political uncertainty or increasing strife among or within political parties in Korea;

•

hostilities or political or social tensions involving major oil producing countries (such as the Israeli-Palestinian conflict) and any material disruption in the global supply of oil or sudden increase in the price of oil;

•

increased reliance on exports to service foreign currency debts, which could cause friction with Korea’s trading partners;

•

the continued growth of the Chinese economy, to the extent its benefits (such as increased exports to China) are outweighed by its costs (such as competition in export markets or for foreign investment and the relocation of manufacturing bases from Korea to China);

•

hostilities, political or social tensions involving Russia (including the invasion of Ukraine by Russia and ensuing actions that the United States and other countries have taken or may take in the future) and any resulting adverse effects on the global supply of oil or the global financial markets; and

•

an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States.

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(2)

Results of operations

Despite ongoing uncertainty in the global macroeconomic environment and continued sluggish demand in downstream industries, we achieved revenue growth compared to the previous year by expanding production levels, mainly of panels for smartphones, while reducing operating loss through extensive cost reduction measures and operational efficiency improvements. Our revenue increased by 25% to 26.6 trillion in 2024 compared to 2023, while our operating loss decreased by approximately 2 trillion to 560.6 billion during the same period. However, due to increased foreign exchange losses driven by increased exchange rate fluctuations and general depreciation of the Korean Won against the U.S. dollar in 2024, our net loss for the year remained largely unchanged from the previous year at 2.4 trillion.

By products:

•

Television. The production volume of our OLED display panels for televisions increased by approximately 40% as we expanded our customer base and reinforced our position in the high-end market through new product promotions, while maintaining healthy inventory levels. As a result, the revenue from our television panel business increased by 38% in 2024 compared to 2023. We plan to fully discontinue production in our TFT-LCD television panel business after the first quarter of 2025 and thereafter focus on ultra-large OLED television panels and premium business-to-consumer products, such as OLED gaming monitors, to operate our business with a focus on profitability.

•

IT. Demand for panels for IT products continued to remain weak, with market conditions varying by product type and region. In 2024, sales of entry-level models and sales in emerging markets increased, while the high-end display panel market for IT products showed relatively weak performance. Despite these challenges, the revenue from our IT products increased by 20% in 2024 compared to 2023, mainly reflecting our mass production of OLED panels for IT products utilizing tandem OLED technology. As for profitability, we have improved our financial performance through intensive cost structure reform, operational efficiency and strengthened partnerships with key customers in the downstream industry. In 2025, we plan to continue to closely assess and respond to opportunities related to a potential recovery in demand for panel purchases, including the increasing adoption of OLED products across product categories and replacement cycles of IT products.

•

Mobile and other products. The production volume of our display panels for mobile and other products continued to expand as we strengthened our smartphone production capabilities, technological expertise and strategic positioning in the market. As a result, revenue from our mobile and other products business increased by 25% in 2024 compared to 2023. Going forward, we plan to further strengthen our competitiveness by reinforcing our position in the high-end market, through leveraging strong customer trust.

•

Auto products. The revenue from our auto products increased by approximately 14% in 2024 compared to 2023, driven by the operation of a three-track product portfolio, consisting of plastic OLED, advanced thin OLED and LTPS LCD panels, alongside our strong relationships with global customers. Going forward, we plan to secure both growth and profitability by expanding our sales and order volumes.

(Unit: In millions of Won)


Revenue	2024		2023		Changes
Revenue	2024		2023		Amount		Percentage
TV		5,972,637		4,331,474		1,641,163		38	%
IT		9,419,615		7,853,034		1,566,581		20	%
Mobile and other products*		8,942,349		7,146,998		1,795,351		25	%
Auto products		2,280,746		1,999,313		281,433		14	%
Total*		26,615,347		21,330,819		5,284,528		25	%

(*)	Includes royalty and other revenue.

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(a)

Revenue and cost of sales

Our business performance improved significantly as we enhanced our OLED-focused business structure, achieving a 25% increase in our revenue compared to the previous year. Despite the volatile external environment, our cost of sales as a percentage of revenue decreased by 8.1 percentage points from 98.4% in 2023 to 90.3% in 2024, which mainly reflected our intensive cost reform efforts.

(Unit: In millions of Won, except percentages)


Description	2024			2023			Changes
Description	2024			2023			Amount		Percentage
Revenue		26,615,347			21,330,819			5,284,528		24.77	%
Cost of sales		24,039,928			20,985,643			3,054,285		14.55	%
Gross profit		2,575,419			345,176			2,230,243		646.12	%
Cost of sales as a percentage of sales		90.3	%		98.4	%		(8.1)% points

(b)

Sales by category

There were no significant changes in the overall proportion of revenue attributable to each of our product segments compared to the previous year, as our ongoing transition to an OLED-focus business structure was reflected across all product categories. The proportion of our revenue attributable to our television panel business increased by 2.1 percentage points in 2024 compared to 2023 mainly due to the increase in production volume driven by strengthened customer relationships and a strategic focus on high-end products. Despite the commencement of mass production of OLED panels for tablets, the proportion of our revenue attributable to our IT products business decreased by 1.4 percentage points in 2024 compared to 2023, mainly due to prolonged weak demand for TFT-LCD panels for IT products. The proportion of our revenue attributable to our mobile and other products business remained at a similar level compared to the previous year, as production levels remained stable following the expansion of smartphone production capacity.


Categories	2024			2023			Difference
Panels for televisions		22.4	%		20.3	%		2.1% points
Panels for IT products		35.4	%		36.8	%		(1.4)% points
Panels for mobile applications and others*		33.6	%		33.5	%		0.1% points
Panels for auto products		8.6	%		9.4	%		(0.8)% points

(*)	Includes royalty and other revenue.

(c)

Production capacity

Due mainly to the commencement of mass production of OLED panels for IT products and expanded operations in light of an increase in the sales volume of OLED television products, our annual production capacity increased by 26% as of December 31, 2024 compared to the end of the previous year.

(Unit: 1,000 glass sheets)

Business

Item

Facility Location

2024*

2023*

2022*

Display

Display panels and etc.

Gumi, Paju, Guangzhou

6,573

5,223

8,794

(*)

Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth-generation glass sheets) during the year multiplied by the number of months in a year (i.e., 12 months). The production capacity for facilities with adjusted utilization rates have been calculated based on the maximum input capacity during the period.

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(3)

Financial condition

Note: The financial information below is based on our financial statements which remain subject to approval at our upcoming annual general meeting of shareholders scheduled on March 20, 2025. If our financial statements are not approved at such annual general meeting of shareholders or otherwise become amended, we will disclose such matter and the reasons therefor in an amended report.

(Unit: In millions of Won)


Description	2024			2023			Changes
Description	2024			2023			Amount			Percentage
Current assets		10,123,037			9,503,186			619,851			6.5	%
Non-current assets		22,736,529			26,256,112			(3,519,583	)		(13.4	)%
Total assets		32,859,566			35,759,298			(2,899,732	)		(8.1	)%
Current liabilities		15,859,084			13,885,028			1,974,056			14.2	%
Non-current liabilities		8,927,675			13,103,726			(4,176,051	)		(31.9	)%
Total liabilities		24,786,759			26,988,754			(2,201,995	)		(8.2	)%
Share capital		2,500,000			1,789,079			710,921			39.7	%
Share premium		2,773,587			2,251,113			522,474			23.2	%
Retained earnings		(18,512	)		2,676,014			(2,694,526	)		(100.7	)%
Reserves		995,823			515,976			479,847			93.0	%
Accumulated other comprehensive income held for sale		291,363			0			291,363			N.A.	*
Non-controlling interest		1,530,546			1,538,362			(7,816	)		(0.5	)%
Total equity		8,072,807			8,770,544			(697,737	)		(8.0	)%
Total liabilities and equity		32,859,566			35,759,298			(2,899,732	)		(8.1	)%
Liabilities-to-equity ratio		307.0	%		307.7	%		(0.7) percentage points			—

(*)	Not applicable.

Our total assets amounted to 32,860 billion as of December 31, 2024, representing a decrease of 8.1% (or 2,900 billion) from our total assets as of December 31, 2023. Such decrease was primarily driven by our ongoing efforts to transition to an OLED-focused business structure, which included reclassifying the assets of our large-sized LCD television panel manufacturing subsidiaries in China as accumulated other comprehensive income held for sale, as well as a reduction in our investments compared to the previous year.

Our total liabilities amounted to 24,787 billion as of December 31, 2024, representing a decrease of 2,202 billion from the end of the previous year, and our liabilities-to-equity ratio as of December 31, 2024 remained at a similar level compared to the previous year at 307.0%. The decrease in liabilities was mainly due to the reclassification of the liabilities of our large-sized LCD television panel manufacturing subsidiaries in China as accumulated other comprehensive income held for sale, as well as the impact of cost reduction initiatives and investment reductions to enhance our cost competitiveness.

Our total equity amounted to 8,073 billion as of December 31, 2024, representing a decrease of 698 billion from the end of the previous year. Despite an increase of 1,281 billion from our paid-in capital increase in 2024, our total equity decreased partly due to the net loss recorded for the year, which led to a reduction in retained earnings.

In light of the increasing uncertainties in the external business environment and intensifying competition among display panel manufacturers, we have continued to enhance our business structure to strengthen profitability and have continually engaged in activities to restore our financial soundness. We are dedicated to improving our key financial indicators such as our liabilities-to-equity ratio by stabilizing our financial structure.

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(4)

Dependence on Key Customers

We sell our products to a select group of key customers, including our largest shareholder, and any significant decrease in their order levels will negatively affect our financial condition and results of operations.

A substantial portion of our sales is attributable to a limited group of end-brand customers and their designated system integrators. Sales attributed to our end-brand customers are for their end-brand products and do not include sales to these customers for their system integration activities for other end-brand products, if any. Our top ten end-brand customers, including LG Electronics Inc., our largest shareholder, together accounted for approximately 86% of our sales in 2022, 87% in 2023 and 89% in 2024.

We benefit from the strong collaborative relationships we maintain with our end-brand customers by participating in the development of their products and gaining insights about levels of future demand for our products and other industry trends. Customers trust our ability to supply differentiated and quality products even during downturns in the industry, and we benefit from the brand recognition of our customers’ end products. The weakening of our ties with these end-brand customers, as a result of their entering into strategic supplier arrangements with our competitors or otherwise, would thus result in reduced sales and the loss of the aforementioned benefits. We cannot provide assurance that a select group of key end-brand customers, including our largest shareholder, will continue to place orders with us in the future at the same levels as in prior periods, or at all.

We expect that we will continue to be dependent upon LG Electronics and its affiliates for a significant portion of our revenue for the foreseeable future. Our results of operations and financial condition could therefore be affected by the overall performance of LG Electronics and its affiliates. Further details of our transactions with LG Electronics and its affiliates are described in Note 29 of the notes to our consolidated annual financial statements of the notes to our consolidated financial statements included elsewhere in this report.

Our revenue depends on continuing demand for IT products (comprising notebook computers, desktop monitors and tablet computers), televisions, mobile products, automobiles and other devices with panels of the type we produce. Our sales may not grow at the rate we expect if consumers do not purchase these products.

Currently, our total sales are derived principally from customers who use our products in IT products (comprising notebook computers, desktop monitors and tablet computers), televisions, mobile devices, automobiles and other products with display devices. In particular, a substantial percentage of our sales is derived from end-brand customers, or their designated system integrators, who use our panels in their IT products, which accounted for 42.5%, 36.8% and 35.4% of our total revenue in 2022, 2023 and 2024, respectively. A substantial portion of our sales is also derived from end-brand customers, or their designated system integrators, who use our panels in their televisions, which accounted for 26.5%, 20.3% and 22.4% of our total revenue in 2022, 2023 and 2024, respectively, those who use our panels in their mobile and other products, which accounted for 24.0%, 33.5% and 33.6% of our total revenue in 2022, 2023 and 2024, respectively, and those who use our panels in their auto products, which accounted for 6.9%, 9.4% and 8.6% of our total revenue in 2022, 2023 and 2024, respectively. (In the case of 2022, the foregoing descriptions of sales revenues generally exclude the amount of forward exchange hedging loss for currency risk management of expected export transactions, which has been reclassified to revenue.) Due to the structure of our sales, we will continue to be affected by demand from the IT products industry (comprising the personal computer and tablet computer industries), television industry, mobile device industry and automobile industry. Any downturn in any of such industries in which our customers operate may result in reduced demand for our products, which may in turn result in reduced revenue, lower average selling prices and/or reduced margins.

(5)

Changes in Manufacturing Costs and Difficulties in Securing Supply of Raw Material

If we cannot maintain high capacity utilization rates, our profitability will be adversely affected.

The production of display panels entails high fixed costs resulting from considerable expenditures for the construction of complex fabrication and assembly facilities and the purchase of costly equipment. We aim to realize a higher gross margin and strive to maintain high capacity utilization rates so that we can allocate fixed costs over a greater number of panels produced. However, due to fluctuating demand for our products or overcapacity in the display industry, we may need to adjust utilization rates to a level that is lower than optimal and reduce production. As such, we cannot provide assurance that we will be able to maintain high capacity utilization rates in the future due to possibilities of fluctuation in market and industry conditions.

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Limited availability of raw materials, components and manufacturing equipment could materially and adversely affect our business, results of operations or financial condition.

Our production operations are partly dependent on obtaining adequate supplies of quality raw materials and components on a timely basis. As a result, it is important for us to control our raw material and component costs and reduce the effects of fluctuations in price and availability. In general, we source most of our raw materials as well as key components, such as glass substrates, driver integrated circuits, polarizers and color filters used in both our TFT-LCD and OLED products, backlight units and liquid crystal materials used in our TFT-LCD products and emission materials used in our OLED products, from two or more suppliers for each key component. However, we may establish a working relationship with a single supplier if we believe it is advantageous to do so due to performance, quality, support, delivery, capacity, price or other considerations.

We may experience shortages in the supply of these key components, as well as other components or raw materials, as a result of, among other things, anticipated capacity expansion in the display industry, our dependence on a limited number of suppliers or other factors that are outside of our control such as military conflicts including the Russia-Ukraine and Israel-Palestine wars, natural calamities, health epidemics such as the COVID-19 pandemic, social unrest, work stoppages, strikes and trade sanctions. Our results of operations would be adversely affected if we were unable to obtain adequate supplies of high-quality raw materials or components in a timely manner or make alternative arrangements for such supplies in a timely manner.

We have purchased, and expect to purchase, a substantial portion of our equipment from a limited number of qualified foreign and local suppliers. From time to time, increased demand for new equipment may cause lead times to extend beyond those normally required by the equipment vendors. The unavailability of equipment, delays in the delivery of equipment, or the delivery of equipment that does not meet our specifications, could delay implementation of our expansion plans and impair our ability to meet customer orders. This could result in a loss of revenue and cause financial stress on our operations.

(6)

Intangible Assets, Including Intellectual Property, and Research and Development Activities

Our business relies on our patent rights which may be narrowed in scope or found to be invalid or otherwise unenforceable.

Our success will be affected, to a significant extent, by our ability to obtain and enforce our patent rights both in Korea and worldwide. The coverage claimed in a patent application can be significantly reduced before a patent is issued, either in Korea or abroad. Consequently, we cannot provide assurance that any of our pending or future patent applications will result in the issuance of patents. Patents issued to us may be subjected to further proceedings limiting their scope and may not provide significant proprietary protection or competitive advantage. Our patents also may be challenged, circumvented, invalidated or deemed unenforceable. In addition, because patent applications in certain countries generally are not published until more than 18 months after they are first filed, and because publication of discoveries in scientific or patent literature often lags behind actual discoveries, we cannot be certain that we were, or any of our licensors was, the first creator of inventions covered by pending patent applications, that we or any of our licensors will be entitled to any rights in purported inventions claimed in pending or future patent applications, or that we were, or any of our licensors was, the first to file patent applications on such inventions.

Furthermore, pending patent applications or patents already issued to us or our licensors may become subject to dispute, and any dispute could be resolved against us. For example, we may become involved in re-examination, reissue or interference proceedings and the result of these proceedings could be the invalidation or substantial narrowing of our patent claims. We also could be subject to court proceedings that could find our patents invalid or unenforceable or could substantially narrow the scope of our patent claims. In addition, depending on the jurisdiction, statutory differences in patentable subject matter may limit the protection we can obtain on some of our inventions.

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Failure to protect our intellectual property rights could impair our competitiveness and harm our business and future prospects.

We believe that developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. We take active measures to obtain international protection of our intellectual property by obtaining patents and undertaking monitoring activities in our major markets. However, we cannot assure you that the measures we are taking will effectively deter competitors from improper use of our proprietary technologies. Our competitors may misappropriate our intellectual property, disputes as to ownership of intellectual property may arise and our intellectual property may otherwise become known or independently developed by our competitors. Any failure to protect our intellectual property could impair our competitiveness and harm our business and future prospects.

We also partially rely on technology provided by third parties and our business will suffer if we are unable to renew our licensing arrangements with them.

From time to time, we have obtained licenses for patent, copyright, trademark and other intellectual property rights to process and device technologies used in the production of our display panels. We have entered into key licensing arrangements with third parties, for which we have made, and continue to make, periodic license fee payments. In addition, we also have cross-license agreements with certain other third parties. These agreements terminate upon the expiration of the respective terms of the patents.

If we are unable to renew our technology licensing arrangements on acceptable terms, we may lose the legal protection to use certain of the processes we employ to manufacture our products and be prohibited from using those processes, which may prevent us from manufacturing and selling certain of our products, including our key products. In addition, we could be at a disadvantage if our competitors obtain licenses for protected technologies on more favorable terms than we do.

In the future, we may also need to obtain additional patent licenses for new or existing technologies. We cannot provide assurance that these license agreements can be obtained or renewed on acceptable terms or at all, and if not, our business and operating results could be adversely affected.

We rely upon trade secrets and other unpatented proprietary know-how to maintain our competitive position in the display panel industry and any loss of our rights to, or unauthorized disclosure of, our trade secrets or other unpatented proprietary know-how could negatively affect our business.

We also rely upon trade secrets, unpatented proprietary know-how and information, as well as continuing technological innovation in our business. The information we rely upon includes price forecasts, core technology and key customer information. We enter into confidentiality agreements with each of our employees and consultants upon the commencement of an employment or consulting relationship. These agreements generally provide that all inventions, ideas, discoveries, improvements and copyrightable material made or conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made known to the individual during the term of the relationship is our exclusive property.

We cannot provide assurance that these types of agreements are sufficient to prevent the misuse of our intellectual property rights and cannot guarantee that they will be fully enforceable, or that they will not be breached. We also cannot be certain that we will have adequate remedies for any such breach. The disclosure of our trade secrets or other know-how as a result of such a breach could adversely affect our business. Also, our competitors may come to know about or determine our trade secrets and other proprietary information through a variety of methods. Disputes may arise concerning the ownership of intellectual property or the applicability or enforceability of our confidentiality agreements, and there can be no assurance that any such disputes would be resolved in our favor. Furthermore, others may acquire or independently develop similar technology, or if patents are not issued with respect to technologies arising from our research, we may not be able to maintain information pertinent to such research as proprietary technology or trade secrets and that could have an adverse effect on our competitive position within the display panel industry.

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We have designated R&D organizations for our research and development activities.

Our research organizations consist of the infrastructure technology research center, next-generation technology research center and their designated departments, all of which are overseen by our chief technology officer. Our research organizations conduct research on differentiated and next-generation technologies and basic infrastructure technology as well as enhances our competitiveness by conducting research that is geared toward future product development. Our development organization comprises of groups and departments dedicated to the development of a wide range of television, IT, mobile and auto products, including product-specific circuits, instrument/optics and panel design.

Our research and development related expenditures amounted to 2,237 billion in 2024, which represented a decrease of 162 billion from 2023, and we are continually making investments that seek to strengthen our capabilities for our future businesses.

The book value of our intangible assets decreased by 216 billion compared to the end of the previous year to 1,558 billion as of December 31, 2024.

(7)

Sensitivity to Exchange Rates and Inflation

There has been considerable volatility in foreign exchange rates for major currencies in recent years. To the extent that we incur costs in one currency and make sales in another, our profit margins may be affected by changes in the exchange rates between the two currencies.

Our sales of display panels are denominated mainly in U.S. dollars, whereas our purchases of raw materials are denominated mainly in U.S. dollars, Japanese Yen and Chinese Yuan. Our expenditures on capital equipment are primarily denominated in Korean Won, U.S. dollars, Vietnamese Dong, Chinese Yuan and Japanese Yen. Accordingly, fluctuations in exchange rates, in particular between the U.S. dollar and the Korean Won, between the Japanese Yen and the Korean Won as well as between the Chinese Yuan and the Korean Won, affect our pre-tax income, and in recent years, the value of the Won relative to the U.S. dollar, Chinese Yuan and Japanese Yen has fluctuated widely. Although a depreciation of the Korean Won against the U.S. dollar increases the Korean Won value of our export sales and enhances the price-competitiveness of our products in foreign markets in U.S. dollar terms, it also increases the cost of imported raw materials and components in Korean Won terms and our cost in Korean Won of servicing our U.S. dollar denominated debt. A depreciation of the Korean Won against the Chinese Yuan or Japanese Yen increases the Korean Won cost of our Chinese Yuan- or Japanese Yen-denominated purchases of equipment, raw materials or components, as applicable, but has relatively little impact on our sales as most of our sales are denominated in U.S. dollars. In addition, continued exchange rate volatility may also result in foreign exchange losses for us. Although a depreciation of the Korean Won against the U.S. dollar, in general, has a net positive impact on our results of operations that more than offsets the net negative impact caused by a depreciation of the Korean Won against the Chinese Yuan or Japanese Yen, we cannot provide assurance that the exchange rate of the Korean Won against foreign currencies will not be subject to significant fluctuations, or that the impact of such fluctuations will not adversely affect the results of our operations.

(8)

Mergers, Business Transfers, Spin-offs, Asset Transfers and Comprehensive Stock Swap

In September 26, 2024, we entered into an agreement with TCL CSOT to dispose of our 51% equity interest in LG Display (China) Co., Ltd. and 100% equity interest in LG Display Guangzhou Co., Ltd., which sale is expected to be completed within one year. As a result, our equity interest in LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. have been reclassified as assets held for sale.

(9)

Impairment Loss

The carrying amounts of our non-financial assets, other than assets arising from employee benefits, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. However, for goodwill acquired through business combinations, intangible assets with indefinite useful lives and intangible assets not yet in use, we conduct impairment tests on an annual basis, comparing the recoverable amount to the carrying amount, regardless of whether there are any indications of impairment.

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As of the end of the reporting period, our cash generating units (CGUs) consist of the “Display CGU,” “Display (Large OLED) CGU” and “Display (AD PO) CGU”. We have conducted impairment tests for all of these CGUs. As of the end of the reporting period, all of our goodwill has been allocated to the Display CGU.

(10)

Changes in Organization and Business Reorganization

In order to secure the fundamental competitiveness of our businesses and to seek sustainable growth, we are accelerating the transition of our business focus to the OLED business, while simultaneously pursuing activities to restructure our TFT-LCD business. In particular, we are in the process of forming an optimal business structure tailored to our future business through efficient human resources management and activities geared to achieve innovative enhancement of our personnel structure in order to improve our cost structure. From the overall organizational level, we established an organizational structure geared towards providing value innovations to customers, and we are in the process of changing the organizational structure and reorganizing our business units in order to achieve differentiated competitive strengths and enhanced profitability of our OLED business.

Liquidity and capital resources

(1)

Liquidity

Our main source for the procurement of funds include operations and financing activities. As of December 31, 2023 and 2024, our cash and cash equivalents amounted to 2,258 billion and 2,022 billion, respectively. Short-term deposits in banks decreased by 905 billion from 906 billion as of December 31, 2023 to 0.6 billion as of December 31, 2024 mainly due to a decrease in our subsidiaries’ restricted cash deposits as collateral for borrowing purposes.

Our primary use of cash has been to fund capital expenditures related to the expansion and improvement of our production capacity with respect to existing and newly developed products, including the construction and ramping-up of new, or in certain cases, expansion or conversion of existing, fabrication facilities and production lines and the acquisition of new equipment. We also use cash flows from operations for our working capital requirements and servicing our debt payments. We expect our cash requirements for 2025 to be primarily for capital expenditures and repayment of maturing debt.

The details of our cash and cash equivalents and deposits in banks as of December 31, 2023 and 2024 are as follows:

(Unit: in millions of won)


Description	2024		2023
Current assets
Cash and cash equivalents
Cash		—		3
Demand deposits(1)		2,021,640		2,257,519
Deposits in banks
Time deposits(2)		600		905,971

Non-current assets
Deposits in banks
Deposit for checking account		11		11

(1)	As of December 31, 2024, 158 billion of demand deposits has been reclassified as assets held for sale.

(2)	Time deposits as of December 31, 2023 include mutual growth fund to aid LG Group’s suppliers, as well as our and our subsidiaries’ restricted cash deposits pledged as collateral for borrowing purposes and others.

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As of December 31, 2023, our current assets and current liabilities amounted to 9,503 billion and 13,885 billion, respectively, resulting in a working capital of (4,382) billion. As of December 31, 2024, our current assets and current liabilities amounted to 10,123 billion and 15,859 billion, respectively, resulting in a working capital of (5,736) billion.

(Unit: in millions of won)


Description	2024			2023			Changes
Description	2024			2023				Amount		Percentage
Current assets		10,123,037			9,503,186			619,851		6.1	%
Current liabilities		15,859,084			13,885,028			1,974,056		12.4	%
Net current assets		(5,736,047	)		(4,381,842	)		(1,354,205	)	(23.6	)%

We have established short-, mid- and long-term management strategies to continually monitor our cash flows. In addition, we have a sufficient level of cash and cash-equivalent assets to respond to unexpected liquidity risks in the future. In addition, in order to secure additional cash equivalents assets against potential liquidity risk situations, we have established, and proactively operate, a liquidity management system through securitization of receivables and increased borrowing capacity from financial institutions.

(2)

Financial liabilities and capital resources

We are subject to financial and other covenants, including maintenance of credit ratings and terms related to specific financial items such as financial ratios, under certain of our debt obligations. If we experience an event of default due to our failure to comply with the applicable covenants, the principal amount and interest of our debt instruments may be subject to early repayment.

As of December 31, 2024, we are in compliance with the terms of our debt instruments, and our financial liabilities and capital resources are as follows:

(a)

Financial liabilities

The details of our financial liabilities as of December 31, 2023 and 2024 are as follows:

(Unit: in millions of won)


Description	2024		2023
Current financial liabilities
Short-term borrowings		969,595		1,875,635
Current portion of long-term borrowings		4,907,390		2,934,693
Current portion of bonds		611,882		369,716
Derivatives (*)		3,762		26,193
Derivatives (designated for fair value hedging) (**)		—		7,392
Lease liabilities		34,821		48,666
Total		6,527,450		5,262,295
Non-current financial liabilities
Long-term borrowings		7,535,290		10,230,658
Bonds		525,957		1,118,427
Derivatives (*)		7,006		37,333
Derivatives (designated for fair value hedging) (**)		—		28,660
Lease liabilities		23,154		24,698

Total		8,091,407		11,439,776

(*)	Represents derivatives that have not been recognized as hedging instruments and have resulted from currency interest rate swap contracts entered into in order to manage risks arising from foreign currency-denominated borrowings and foreign currency-denominated bonds.

(**)	Represents derivatives that have been recognized as hedging instruments and have resulted from currency forward contracts entered into in order to manage risks arising from foreign currency-denominated advances.

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(b)

Capital resources

Set forth below are the details of our procurement of funds as of December 31, 2024.

(Unit: In millions of Won)


Type	Currency	Lender	Longest Maturity		Interest rate as of December 31, 2024 (%)		2024			2023
Short-term borrowings	Korean Won	KEB Hana Bank, etc.		—		—		—			850,000
Short-term borrowings	Foreign currency	Standard Chartered Bank Singapore, etc.		April 2025		3.50~6.41		969,595			1,025,635
Long-term borrowings	Korean Won	Korea Development Bank, etc.		March 2030		2.41~6.06		4,668,538			4,490,967
Long-term borrowings	Foreign currency	KEB Hana Bank, etc.		July 2029		2.13~7.06		7,774,142			8,674,384
Bonds	Korean Won	Unsecured Public Offering		February 2027		2.79~3.66		655,000			1,025,000
	Korean Won	Unsecured Private Offering		January 2026		7.20~7.25		337,000			337,000
	Foreign currency	Unsecured Private Offering		April 2026		6.52		147,000			128,940
		Less: original issue discount						(1,161	)		(2,797	)

		Total						14,550,114			16,529,129

Set forth below are the cash flows on our borrowings by maturity, including interest payable thereon. We do not expect that such cash outflows will occur materially earlier than, or be materially different in amounts from, as indicated below.

(Unit: In millions of Won or millions of other currency)


Categories	Book value		Contractual cash flows
Categories	Book value		Total		Within 6 months		6~12 months		1~2 years		2~5 years		Over 5 years
Borrowings		13,412,275		14,453,995		3,730,807		2,609,727		3,941,215		4,146,933		25,313
Bonds		1,137,839		1,185,892		631,539		11,638		416,573		126,142		0

Total		14,550,114		15,639,887		4,362,346		2,621,365		4,357,788		4,273,075		25,313

(3)

Cash usage

Our management constantly monitors our working capital, and we have been funding our cash requirements from cash flows from operations and debt financing. As of December 31, 2023, we believe that we have sufficient working capital for our present requirements.

Our ability to satisfy our cash requirements from cash flows from operations and financing activities will be affected by our ability to maintain and improve our margins and, in the case of external financing, market conditions, which in turn may be affected by several factors outside of our control. Therefore, we re-evaluate our capital requirements regularly in light of our cash flows from operations, the progress of our expansion plans and market conditions. To the extent that we do not generate sufficient cash flows from our operations to meet our capital requirements, we may rely on other financing activities, such as external long-term borrowings and securities offerings, including the issuance of equity, equity-linked and other debt securities.

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In March 2024, as part of our ongoing efforts to improve our financial condition and liquidity, we issued 142,184,300 new shares of common stock at a subscription price of 9,090 per share (and US$3.4500019 per ADS) pursuant to a preemptive rights offering to our existing shareholders (including ADS holders) followed by a public offering in Korea. We have used and will continue to use the proceeds of such offering to fund our capital investments, general corporate purposes (including purchases of raw materials) and debt repayment. Immediately following the completion of such offering, the number of issued and outstanding shares of our common stock increased to 500,000,000.

Our net cash provided by operating activities amounted to 1,683 billion in 2023 and 2,412 billion in 2024. The increase in net cash provided by operating activities in 2024 compared to 2023 was mainly attributable to an increase in cash collected from our customers primarily as result of an increase in our sales revenue.

Our net cash used in investing activities amounted to 2,589 billion in 2023 and 1,363 billion in 2024. Net cash used in investing activities were primarily in relation to the construction of our new facilities and the expansion and conversion of our existing production facilities, which amounted to 3,483 billion in 2023 and 2,130 billion in 2024.

Such amounts in turn primarily reflected our investments in enhancing our OLED-focused business structure, including OLED display production facilities for IT products, as well as essential capital investments in the ordinary course of business. In 2025, as our top priority remains to be strengthening our business structure and financial soundness while securing stable profitability, we plan to take a conservative approach to new expansion investments. Accordingly, we plan to maintain a similar level of capital expenditure in 2025 compared to 2024, at around the low-to-mid 2 trillion range. We intend to fund our capital requirements associated with our expansion and construction projects with cash flows from operations and financing activities, such as external long-term borrowings. However, our overall expenditure levels and our allocation among projects are subject to many uncertainties, including the general economic conditions, fiscal policies, government regulations and competitive landscape.

Our net cash provided by financing activities amounted to 1,351 billion inflow in 2023 and 1,334 billion outflow in 2024. The net cash provided by financing activities in 2023 and 2024 primarily reflect borrowings incurred and repaid during such periods.

(Unit: In millions of Won)


Description	2024			2023			Changes
Net cash provided by operating activities		2,411,761			1,682,748			729,013
Net cash used in investing activities		(1,363,248	)		(2,589,336	)		1,226,088
Net cash provided by financing activities		(1,334,305	)		1,350,863			(2,685,168	)
Cash and cash equivalents at December 31		2,021,640			2,257,522			(235,882	)

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15.	Board of Directors

Members of the board of directors

As of December 31, 2024, our board of directors consisted of two non-outside directors, one non-standing director and four outside directors.

(As of December 31, 2024)


Name	Position	Primary responsibility
Cheol Dong Jeong(1)	Representative Director (non-outside)	Chairman of board of directors
Sung Hyun Kim	Director (non-outside), Chief Financial Officer and Executive Vice President	Overall head of finances
Beom Jong Ha	Non-standing Director	Related to the overall management
Doo Cheol Moon(1)	Outside Director	Related to the overall management
Chung Hae Kang	Outside Director	Related to the overall management
Jung Suk Oh	Outside Director	Related to the overall management
Sang Hee Park	Outside Director	Related to the overall management

(1)	At the annual general meeting of shareholders held on March 22, 2024, James (Ho Young) Jeong retired from his position as a non-outside director, Cheol Dong Jeong was newly appointed as a non-outside director, and Doo Cheol Moon was reappointed as an outside director.

Committees of the board of directors

We have the following committees that serve under our board of directors: Management Committee, Outside Director Nomination Committee, Audit Committee, ESG Committee and Related Party Transaction Committee.

As of December 31, 2024, the Management Committee consisted of two non-outside directors, Cheol Dong Jeong (Chairman) and Sung Hyun Kim.

As of December 31, 2024, the composition of the Outside Director Nomination Committee was as follows.

(As of December 31, 2024)


Committee	Composition	Members(1)
Outside Director Nomination Committee	1 non-standing director and 2 outside directors	Beom Jong Ha, Doo Cheol Moon and Jung Suk Oh

(1)	Beom Jong Ha, Doo Cheol Moon and Jung Suk Oh were each appointed as a member of the outside director nomination committee of the board of directors at the board of directors’ meeting on March 22, 2024.

As of December 31, 2024, the composition of the Audit Committee was as follows.

(As of December 31, 2024)


Committee	Composition	Members(1)
Audit Committee	4 outside directors	Doo Cheol Moon (Chairperson), Chung Hae Kang, Jung Suk Oh and Sang Hee Park

(1)	Doo Cheol Moon was reappointed as an outside director and a member of the Audit Committee on March 22, 2024 and was appointed as the chairperson on April 24, 2024.

As of December 31, 2024, the composition of the ESG Committee was as follows.

(As of December 31, 2024)


Committee	Composition	Members(1)
ESG Committee	1 non-outside director and 4 outside directors	Doo Cheol Moon (Chairperson), Chung Hae Kang, Jung Suk Oh, Sang Hee Park and Cheol Dong Jeong

(1)	Cheol Dong Jeong and Doo Cheol Moon were appointed as members of the committee on March 22, 2024.

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As of December 31, 2024, the composition of the Related Party Transaction Committee was as follows.

(As of December 31, 2024)


Committee	Composition	Members(1)
Related Party Transaction Committee	1 non-outside director and 3 outside directors	Chung Hae Kang (Chairperson), Jung Suk Oh, Sang Hee Park and Sung Hyun Kim

(1)	Sang Hee Park was appointed as a member of the committee on March 22, 2024.

Independence of directors

Directors are appointed in accordance with the procedures of the Commercial Act and other relevant laws and regulations. Our board of directors is independent as four out of the seven directors that comprise the board are outside directors. Outside directors candidates are nominated for appointment at a shareholders’ meeting after undergoing rigorous review by the Outside Director Nomination Committee.

16.	Information Regarding Shares

Total number of shares

(1)

Total number of shares authorized to be issued (as of December 31, 2024): 500,000,000 shares.

(2)

Total shares issued and outstanding (as of December 31, 2024): 500,000,000 shares.

Shareholder list

(1)

Largest shareholder and related parties as of December 31, 2024:


Name	Relationship	Number of shares of common stock		Equity interest
LG Electronics(1)	Largest shareholder		183,593,206		36.72	%

(1)	The number of shares and equity interest held by LG Electronics reflect its participation in our paid-in capital increase in March 2024.

(2)

Shareholders who are known to us that own 5% or more of our shares as of December 31, 2024, which was the most recent record date:


Beneficial owner	Number of shares of common stock(1)		Equity interest
LG Electronics		183,593,206	36.72%
National Pension Service		27,841,533	5.57%
Employee Stock Ownership Association		27,118,517	5.42%

(1)	The number of shares of common stock is based on the most recent shareholder register as of December 31, 2024, and may differ from the actual shareholding status.

17.	Directors and Employees

Directors

(1)

Remuneration for directors in 2024:

(Unit: person, in millions of Won)


Classification	No. of directors(1)		Amount paid(2)(4)		Per capita average remuneration paid(3)
Non-outside directors		3		2,086		695
Outside directors who are not audit committee members		—		—		—
Outside directors who are audit committee members		4		384		96

Total		7		2,470		352

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(1)	Number of directors as of December 31, 2024.

(2)

The total compensation is based on the income under the Income Tax Act (earned income, other income and retirement income, each in accordance with Article 20, 21, and 22 of such act, respectively). It includes the compensation for the new members of the board of directors. Among the directors, one non-standing director is not compensated.

(3)	Per capita average remuneration paid is calculated by using the sum of the average monthly remuneration paid in 2024 (excluding one non-standing director who is not compensated).

(4)

Due to the retirement of James (Ho Young) Jeong as a non-outside director and the appointment of Cheol Dong Jeong as a non-outside director at the annual general meeting of shareholders held on March 22, 2024, the amount paid to non-outside directors includes the remuneration paid to both directors during their terms of office.

(2)

Standards of remuneration paid to non-outside and outside directors

•

Non-outside directors (excluding outside directors and audit committee members)

The remuneration system for non-outside directors consists of base salary, position salary and performance-related pay. The remuneration for non-outside directors is measured in accordance with the standards established by the board of directors (within the amount approved at the annual general meeting of shareholders), including the non-outside director’s position and job responsibilities.

•

Standards for base salary/position salary: relevant position and job responsibilities, among others

•

Standards for performance-related pay: financial performance of the company and achievement of individual management goals, among others

•

Outside directors, audit committee members and auditor

The remuneration for outside directors, audit committee members and auditor is measured in accordance with the standards established by the board of directors (within the amount approved at the annual general meeting of shareholders), including the individual’s job responsibilities, among others.

(3)

Remuneration for individual directors and audit committee members

•

Individual amount of remuneration paid in 2024 (among those paid over 500 million per year)

(Unit: in millions of Won)


Name	Position	Total remuneration		Payment not included in total remuneration
James (Ho Young) Jeong	Former Representative Director, Former President		1,521	—
Cheol Dong Jeong	Representative Director, President		1,424	—
Sung Hyun Kim	Executive Vice President		545	—

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•

Method of calculation


Name		Method of calculation
James (Ho Young) Jeong		Total remuneration • 1,521 million (consisting of 351 million in salary and 1,170 million in retirement pay). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 65 million between January and March were made. • Position salary is calculated based on the significance of the position and responsibilities of the job. Monthly payments of 52 million between January and March were made. • A total of 0.3 million of welfare benefits were paid between January and March in accordance with welfare benefits standards. Retirement pay • Retirement pay is calculated in accordance with the applicable provisions of our regulations on compensation for retiring executives and is evaluated by the duration of employment (24 years), monthly base salary at the time of retirement and payment rate per position (2.5 to 4.5%).
Cheol Dong Jeong		Total remuneration • 1,424 million (consisting of 1,424 million in salary). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 65 million between January and December were made. • Position salary is calculated based on the significance of the position and responsibilities of the job. Monthly payments of 52 million between January and December were made. • A total of 20.1 million of welfare benefits were paid between January and December in accordance with welfare benefits standards.

Sung Hyun Kim		Total remuneration • 545 million (consisting of 545 million in salary). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 37.8 million between January and December were made. • Position salary is calculated based on the significance of the position and responsibilities of the job. Monthly payments of 5.8 million between January and December were made. • A total of 21.9 million of welfare benefits were paid between January and December in accordance with welfare benefits standards.

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(4)

Remuneration for the five highest paid individuals (among those paid over 500 million per year)

•

Individual remuneration amount

(Unit: in millions of Won)


Name	Position	Total remuneration(1)		Payment not included in total remuneration
James (Ho Young) Jeong	Former Representative Director, Former President		1,521		—
Kang Yeol Oh	Advisor		1,481		—
Cheol Dong Jeong	Representative Director, President		1,424		—
Han Seop Kim	Advisor		1,284		—
Hee Yeon Kim	Advisor		1,182		—

(1)	Calculated based on the total amount of remuneration for 2024.

•

Method of calculation


Name		Method of calculation
James (Ho Young) Jeong(1)		Total remuneration(2) • 1,521 million (consisting of 351 million in salary and 1,170 million in retirement pay). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 65 million between January and March were made. • Position salary is calculated based on the significance of the position and responsibilities of the job. Monthly payments of 52 million between January and March were made. • A total of 0.3 million of welfare benefits were paid between January and March in accordance with other welfare benefits standards. Retirement pay • Retirement pay is calculated in accordance with the applicable provisions of our regulations on compensation for retiring executives and is evaluated by the duration of employment (24 years), monthly base salary at the time of retirement and payment rate per position (2.5 to 4.5%).

Kang Yeol Oh(1)		Total remuneration(2) • 1,481 million (consisting of 241 million in salary and 1,240 million in retirement pay). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 31.6 million between January and March and 15.8 million between April and December were made. • A total of 4.3 million of welfare benefits were paid between January and March in accordance with other welfare benefits standards. Retirement pay • Retirement pay is calculated in accordance with the applicable provisions of our regulations on compensation for retiring executives and is evaluated by the duration of employment (14 years), monthly base salary at the time of retirement and payment rate per position (2.5 to 4.5%)

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Cheol Dong Jeong		Total remuneration(2) • 1,424 million (consisting of 1,424 million in salary). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 65 million between January and December were made. • Position salary is calculated based on the significance of the position and responsibilities of the job. Monthly payments of 52 million between January and December were made. • A total of 20.1 million of welfare benefits were paid between January and December in accordance with other welfare benefits standards.

Han Seop Kim(1)		Total remuneration(2) • 1,284 million (consisting of 250 million in salary and 1,034 million in retirement pay). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 31.6 million between January and March and 15.8 million between April and December were made. • A total of 13.4 million of welfare benefits were paid between January and March in accordance with other welfare benefits standards. Retirement pay • Retirement pay is calculated in accordance with the applicable provisions of our regulations on compensation for retiring executives and is evaluated by the duration of employment (12 years), monthly base salary at the time of retirement and payment rate per position (2.5 to 4.5%).

Hee Yeon Kim(1)		Total remuneration(2) • 1,182 million (consisting of 243 million in salary and 939 million in retirement pay). Salary • Base salary is set in accordance with the executive compensation regulations established by the board of directors. Monthly payments of 31.6 million between January and March and 15.8 million between April and December were made. • A total of 6.2 million of welfare benefits were paid between January and March in accordance with other welfare benefits standards. Retirement pay • Retirement pay is calculated in accordance with the applicable provisions of our regulations on compensation for retiring executives and is evaluated by the duration of employment (11 years), monthly base salary at the time of retirement and payment rate per position (2.5 to 4.5%).

(1)	Each of James (Ho Young) Jeong (former president), Kang Yeol Oh (advisor), Han Seop Kim (advisor) and Hee Yeon Kim (advisor) retired from our company effective as of March 31, 2024.

(2)	Calculated based on the total amount of remuneration for 2024.

(5)

Stock options

•

Not applicable.

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Employees

As of December 31, 2024, we had 25,144 employees (excluding our directors). On average, our male employees have served 14.2 years and our female employees have served 11.6 years. The total amount of salary paid to our employees for 2024 based on income tax statements submitted to the Korean tax authority in accordance with Article 20 of the Income Tax Act was 1,929,717 million for our male employees and 268,777 million for our female employees. The following table provides details of our employees as of December 31, 2024:

(Unit: person, in millions of Won, year)


	Number of employees(1)		Total salary in 2024(2)(3)(4)		Average salary per capita(5)		Average years of service
Male		21,454		1,929,717		86		14.2
Female		3,690		268,777		65		11.6

Total		25,144		2,198,494		83		13.8

(1)	Includes part-time employees hired for temporary needs or to serve as temporary replacements for employees on parental leave.

(2)	Welfare benefits and retirement expenses have been excluded. Total welfare benefit provided to our employees for the six months ended December 31, 2024 was 430,300 million and the per capita welfare benefit provided was 17.1 million.

(3)	Based on income tax statements, which are submitted to the Korean tax authority in accordance with Article 20 of the Income Tax Act.

(4)	Includes incentive payments to employees who have transferred from our affiliated companies.

(5)	Calculated using the sum of the average monthly salary.

Remuneration for executive officers (excluding directors)

(Unit: person, in millions of Won)


Number of executive officers	Total salary in 2024	Average salary per capita(1)
86	32,232	367

(1)	Calculated using the sum of the average monthly salary.

18.	Other Matters

Legal proceedings

We are a defendant in two separate civil lawsuits (comprising one damages claim in the United Kingdom filed by private plaintiffs and one damages claim in Israel filed by private plaintiffs) filed against us and certain other TFT-LCD panel manufacturers in connection with alleged anticompetitive behavior of the defendants. In each of these cases, the amount being sought has not been determined. The trial for the case in the United Kingdom was completed and a hearing is scheduled regarding the related litigation costs and the possibility of an appeal, while no trial has been scheduled for the case in Israel. While the expected outcome of each of these cases is unclear, we do not believe that any of these cases would have a material effect on our financial conditions.

Status of collateral pledged to related party

On March 27, 2023, the Board of Directors resolved to borrow 1 trillion from our largest shareholder, LG Electronics, in order to strengthen the competitiveness of our OLED business as well as for working capital purposes, and withdrew 650 billion of the principal amount of such borrowing on March 30, 2023 and the remaining 350 billion on April 20, 2023. The repayment terms provide for a two-year grace period followed by a one-year repayment period in installments with an interest rate of 6.06%. In addition, we pledged certain of our land and buildings equivalent to the sum of the principal and interest amount as collateral for such borrowing.

Material events subsequent to the reporting period

None.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

For the Year Ended December 31, 2024

(With Independent Auditor’s Report Thereon)

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Contents


	Page
Independent Auditor’s Report		57
Consolidated Statements of Financial Position		61
Consolidated Statements of Comprehensive Loss		62
Consolidated Statements of Changes in Equity		63
Consolidated Statements of Cash Flows		64
Notes to the Consolidated Financial Statements		65
Independent Auditor’s Report on Internal Control over Financial Reporting for Consolidation Purposes		178
Management’s Report on the Effectiveness of Internal Control over Financial Reporting for Consolidation Purposes		180

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LOGO

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

LG Display Co., Ltd.

Opinion

We have audited the consolidated financial statements of LG Display Co., Ltd. and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

We have also audited, in accordance with Korean Standards on Auditing, the Group’s Internal Control over Financial Reporting for Consolidation Purposes as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting, and our report dated March 4, 2025 expressed an unqualified opinion.

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(a) Impairment test of cash generating unit

Reasons why the matter was determined to be a key audit matter

As described in Note 9 and 10, the Group has classified the carrying amounts of property, plant, and equipment of 17,202,873 million and intangible assets of 1,558,407 million recognized as of the end of the reporting period into Display, Display (Large OLED), and Display (AD PO) cash generating units (CGUs). The Group identified indications of impairment due to the carrying amount of net assets being higher than market value as of the end of the reporting period and continuous operating losses due to competitive display market conditions. The Group performed an impairment test on the CGUs by evaluating the recoverable amount using the value in use calculated by applying the discounted cash flow model.

We determined the impairment test on the CGUs as a Key Audit Matter considering that significant judgment by management is involved in estimates such as cash flows and discount rates included in the Group’s impairment test.

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How our audit addressed the Key Audit Matter

We have performed the following audit procedures to address the Key Audit Matter.

•

Understanding and evaluating the accounting policies and internal controls of the Group related to impairment testing

•

Testing internal controls such as the management’s review and approval of estimated business plan and significant assumptions for impairment testing

•

Evaluating the completeness and accuracy of underlying data used in management’s valuation model

•

Verifying whether future cash flow estimates are consistent with business plans approved by management

•

Evaluating the appropriateness of significant assumptions in valuation models including discount rates and growth rates by comparing them with external benchmarks within the industry and the Group’s past financial information

•

Evaluating the reasonableness of management’s business plan estimates by comparing business plans established for each CGU in prior periods with actual performance for the current period

•

Evaluating the competence and objectivity of independent external experts engaged by the Group

•

Performing sensitivity analysis to assess the magnitude of changes in significant assumptions applied in valuation models that can result in impairment loss

•

Evaluating the reasonableness of assumptions applied in a valuation model and discount rates used in the management’s evaluation by utilizing auditor’s valuation experts with professional skills and knowledge

(b) Assessment of recognition of deferred tax assets

Reasons why the matter was determined to be a key audit matter

As described in Note 24 to the financial statements, deferred tax assets recognized by the Group as of the end of the reporting period for temporary differences, tax loss carryforwards, and tax credit carryforwards amount to 3,504,177 million KRW. The Group evaluated the realizability of deferred tax assets considering the probability of generating taxable profit against which temporary differences, unused tax loss carryforwards, and tax credit carryforwards can be utilized.

We determined the assessment of realizability of deferred tax assets as a Key Audit Matter considering that significant judgment by management is involved in estimates such as expected taxable income and utilization of tax policy included in the Group’s realizability assessment.

How our audit addressed the Key Audit Matter

We have performed the following audit procedures to address the Key Audit Matter.

•

Understanding and evaluating the accounting policies and internal controls of the Group related to assessment of realizability of deferred tax assets

•

Testing internal controls such as management’s review and approval of significant assumptions in taxable profit forecasts and utilization of tax policy

•

Evaluating whether expected taxable profit estimates are based on approved business plans, past performance, transfer pricing, and dividend policies

•

Evaluating the appropriateness of management’s estimates on future taxable profit by comparing past estimated taxable income with actual performance for the current period

•

Evaluating the appropriateness of estimated timing for realization of temporary differences

•

Evaluating whether expected tax rates applied to measure the deferred tax assets are based on enacted or substantively enacted tax rates by the end of the reporting period and expected to apply to accounting periods when assets are realized

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Other Matters

The consolidated financial statements of the Group for the year ended December 31, 2023, were audited by another auditor who expressed an unqualified opinion on those statements on March 7, 2023.

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Sang-Woo Nam, Certified Public Accountant.

Seoul, Korea

March 4, 2025

This report is effective as of March 4, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2024 and 2023


(In millions of won)	Note	December 31, 2024			December 31, 2023

Assets
Cash and cash equivalents	4, 26		2,021,640			2,257,522
Deposits in banks	4, 26		600			905,971
Trade accounts and notes receivable, net	5, 15, 26, 29		3,624,477			3,218,093
Other accounts receivable, net	5, 26		250,029			126,985
Other current financial assets	6, 26		328,621			168,623
Inventories	7		2,671,242			2,527,728
Prepaid income taxes			12,774			44,505
Assets held for sale	30		983,317			—
Other current assets			230,337			253,759

Total current assets			10,123,037			9,503,186
Deposits in banks	4, 26		11			11
Investments in equity accounted investees	8		33,177			84,329
Other non-current financial assets	6, 26		232,652			173,626
Property, plant and equipment, net	9, 18		17,202,873			20,200,332
Intangible assets, net	10, 18		1,558,407			1,773,955
Investment Property	11, 18		27,911			32,995
Deferred tax assets	24		3,504,177			3,562,861
Defined benefits assets, net	13		160,752			407,438
Other non-current assets			16,569			20,565

Total non-current assets			22,736,529			26,256,112

Total assets			32,859,566			35,759,298


Liabilities
Trade accounts and notes payable	26, 29		4,156,149			4,175,064
Current financial liabilities	12, 26, 27, 28, 29		6,527,450			5,262,295
Other accounts payable	26		1,720,670			2,918,903
Accrued expenses			634,473			648,949
Income tax payable			65,366			52,237
Provisions	14		105,251			117,676
Advances received	15		904,628			625,838
Liabilities held for sale	30		1,656,841			—
Other current liabilities			88,256			84,066

Total current liabilities			15,859,084			13,885,028
Non-current financial liabilities	12, 26, 27, 28, 29		8,091,407			11,439,776
Non-current provisions	14		60,908			63,805
Defined benefit liabilities, net	13		1,093			1,559
Long-term advances received	15		220,500			967,050
Deferred tax liabilities	24		—			2,069
Other non-current liabilities	26		553,767			629,467

Total non-current liabilities			8,927,675			13,103,726

Total liabilities			24,786,759			26,988,754


Equity
Share capital	16		2,500,000			1,789,079
Share premium	16		2,773,587			2,251,113
Retained earnings			(18,512	)		2,676,014
Reserves	16		995,823			515,976
Accumulated other comprehensive income held for sale	30		291,363			—

Equity attributable to owners of the Parent			6,542,261			7,232,182

Non-controlling interests			1,530,546			1,538,362

Total equity			8,072,807			8,770,544

Total liabilities and equity			32,859,566			35,759,298

See accompanying notes to the consolidated financial statements.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Loss

For the years ended December 31, 2024 and 2023


(In millions of won, except loss per share amounts)	Note		2024			2023

Revenue		17, 18, 29		26,615,347			21,330,819
Cost of sales		7, 19, 29		(24,039,928	)		(20,985,643	)

Gross profit				2,575,419			345,176
Selling expenses		19, 20		(584,692	)		(575,785	)
Administrative expenses		19, 20		(1,103,617	)		(899,902	)
Research and development expenses		19		(1,447,706	)		(1,379,653	)

Operating loss				(560,596	)		(2,510,164	)


Finance income		22		883,094			1,122,294
Finance costs		22		(1,821,912	)		(1,634,534	)
Other non-operating income		21		2,100,443			1,472,258
Other non-operating expenses		21		(2,797,981	)		(1,786,234	)
Equity in income of equity accounted investees, net				5,412			(3,061	)

Loss before income tax				(2,191,540	)		(3,339,441	)
Income tax benefit (expense)		23		(217,760	)		762,712

Loss for the period				(2,409,300	)		(2,576,729	)


Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities		13		(131,835	)		49,817
Other comprehensive income (loss) from associates		8		(85	)		170

				(131,920	)		49,987
Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations		16		926,637			23,143
Other comprehensive income (loss) from associates		8, 16		3,320			(2,824	)

				929,957			20,319

Other comprehensive income for the period, net of income tax				798,037			70,306

Total comprehensive loss for the period				(1,611,263	)		(2,506,423	)


Profit (loss) attributable to:
Owners of the Parent				(2,562,606	)		(2,733,742	)
Non-controlling interests				153,306			157,013

Loss for the period				(2,409,300	)		(2,576,729	)


Total comprehensive income (loss) attributable to:
Owners of the Parent				(1,923,316	)		(2,647,407	)
Non-controlling interests				312,053			140,984

Total comprehensive loss for the period				(1,611,263	)		(2,506,423	)

Loss per share (in won)
Basic loss per share		25		(5,438	)		(7,177	)
Diluted loss per share		25		(5,438	)		(7,177	)

See accompanying notes to the consolidated financial statements.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2024 and 2023


		Attributable to owners of the Parent Company
(In millions of won)	Note	Share capital		Share premium			Retained earnings			Reserves			Other comprehensive income classified as held for sale		Sub-total			Non-controlling interests			Total equity
Balances at January 1, 2023			1,789,079		2,251,113			5,359,769			479,628			—		9,879,589			1,439,638			11,319,227

Total comprehensive income (loss) for the period
Profit (loss) for the period			—		—			(2,733,742	)		—			—		(2,733,742	)		157,013			(2,576,729	)
Other comprehensive income (loss)
Remeasurements of net defined benefit liabilities			—		—			49,817			—			—		49,817			—			49,817
Foreign currency translation differences			—		—			—			39,172			—		39,172			(16,029	)		23,143
Other comprehensive income (loss) from associates			—		—			170			(2,824	)		—		(2,654	)		—			(2,654	)

Total other comprehensive income (loss)			—		—			49,987			36,348			—		86,335			(16,029	)		70,306

Total comprehensive income (loss) for the period			—		—			(2,683,755	)		36,348			—		(2,647,407	)		140,984			(2,506,423	)

Transaction with owners, recognized directly in equity
Dividends to non-controlling shareholders in subsidiaries			—		—			—			—			—		—			(42,260	)		(42,260	)

Balances at December 31, 2023			1,789,079		2,251,113			2,676,014			515,976			—		7,232,182			1,538,362			8,770,544

Balances at January 1, 2024			1,789,079		2,251,113			2,676,014			515,976			—		7,232,182			1,538,362			8,770,544

Total comprehensive income (loss) for the period
Profit (loss) for the period			—		—			(2,562,606	)		—			—		(2,562,606	)		153,306			(2,409,300	)
Other comprehensive income (loss)
Remeasurements of net defined benefit liabilities			—		—			(131,835	)		—			—		(131,835	)		—			(131,835	)
Classified as held for sale			—		—						(215,788	)		215,788		—			—			—
Foreign currency translation differences			—		—			—			692,315			75,575		767,890			158,747			926,637
Other comprehensive income (loss) from associates			—		—			(85	)		3,320			—		3,235			—			3,235

Total other comprehensive income (loss)			—		—			(131,920	)		479,847			291,363		639,290			158,747			798,037

Total comprehensive income (loss) for the period			—		—			(2,694,526	)		479,847			291,363		(1,923,316	)		312,053			(1,611,263	)

Transaction with owners, recognized directly in equity
Capital increase	16		710,921		569,893			—			—			—		1,280,814			—			1,280,814
Acquisition of non-controlling shareholders’ interests in subsidiaries			—		(47,419	)		—			—			—		(47,419	)		(183,850	)		(231,269	)
Dividends to non-controlling shareholders in subsidiaries			—		—			—			—			—		—			(136,019	)		(136,019	)

Total transaction with owners, recognized directly in equity			710,921		522,474			—			—			—		1,233,395			(319,869	)		913,526

Balances at December 31, 2024			2,500,000		2,773,587			(18,512	)		995,823			291,363		6,542,261			1,530,546			8,072,807

See accompanying notes to the consolidated financial statements.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2024 and 2023


(In millions of won)	Note		2024			2023

Cash flows from (used in) operating activities:
Cash generated from operations		28		3,373,456			2,819,329
Income taxes paid				(139,782	)		(290,102	)
Interests received				93,945			144,402
Interests paid				(915,858	)		(990,881	)

Cash flows from operating activities				2,411,761			1,682,748

Cash flows from (used in) investing activities:
Dividends received				200			15,200
Increase in deposits in banks				(1,700	)		(943,166	)
Proceeds from withdrawal of deposits in banks				921,995			1,785,231
Acquisition of financial assets at fair value through profit or loss				(5,470	)		(4,615	)
Proceeds from disposal of financial asset at fair value through profit or loss				5,301			546
Acquisition of financial assets at fair value through other comprehensive income				—			(3,000	)
Proceeds from disposal of financial assets at fair value through other comprehensive income				—			2,671
Proceeds from disposal of investments in associates				17,609			—
Acquisition of property, plant and equipment				(2,129,735	)		(3,482,754	)
Proceeds from disposal of property, plant and equipment				248,460			485,659
Acquisition of intangible assets				(786,819	)		(672,076	)
Proceeds from disposal of intangible assets				6,257			6,328
Proceeds from insurance payout				49,995			—
Government grants received				2,307			7,417
Proceeds from settlement of derivatives				274,173			178,610
Increase in short-term loans				19,697			27,411
Increase in deposits				(2,036	)		(3,992	)
Decrease in deposits				2,124			4,535
Proceeds from disposal of greenhouse gas emission permits				14,394			6,659

Cash flows used in investing activities				(1,363,248	)		(2,589,336	)

Cash flows from (used in) financing activities:		28
Proceeds from short-term borrowings				5,219,941			6,729,725
Repayments of short-term borrowings				(6,285,819	)		(7,446,111	)
Proceeds from issuance of bonds				—			469,266
Repayments of bonds				(370,000	)		(433,990	)
Proceeds from long-term borrowings				2,912,552			4,765,524
Repayments of current portion of long-term borrowings				(3,638,904	)		(2,625,970	)
Payment of lease liabilities				(71,008	)		(73,483	)
Capital increase				1,292,455			—
Transaction cost from capital increase				(11,641	)		—
Acquisition of non-controlling shareholders’ interests in subsidiaries				(245,362	)		—
Dividends to non-controlling shareholders in subsidiaries				(136,519	)		(34,098	)

Cash flows from (used in) financing activities				(1,334,305	)		1,350,863

Net increase (decrease) in cash and cash equivalents				(285,792	)		444,275
Cash and cash equivalents at January 1				2,257,522			1,824,649
Effect of exchange rate fluctuations on cash held				208,325			(11,402	)
Cash and cash equivalents included in assets held for sale				(158,415	)		—

Cash and cash equivalents at December 31				2,021,640			2,257,522

See accompanying notes to the consolidated financial statements.

Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity

(a)

Description of the Parent Company

LG Display Co., Ltd. (the “ Parent Company “) was incorporated in February 1985 and the Parent Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Parent Company and its subsidiaries (the “Group”) is to manufacture and sell displays and its related products. As of December 31, 2024, the Group is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Parent Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of December 31, 2024, LG Electronics Inc., a major shareholder of the Parent Company, owns 36.72% (183,593,206 shares) of the Parent Company’s common stock.

As of December 31, 2024, 500,000,000 shares of the Parent Company’s common stock are listed on Korea Exchange under the identifying code 034220, and 20,944,314 American Depository Shares (“ADSs”, 2 ADSs represent one share of common stock) are listed on the New York Stock Exchange under the symbol “LPL”.

Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued

(b)

Consolidated Subsidiaries as of December 31, 2024


(In millions)
Subsidiaries	Location	Percentage of ownership(%)	Closing month	Date of incorporation	Business
LG Display America, Inc.	San Jose, U.S.A.	100	December	September 24, 1999	Sales of display products
LG Display Germany GmbH	Eschborn, Germany	100	December	October 15, 1999	Sales of display products
LG Display Japan Co., Ltd.	Tokyo, Japan	100	December	October 12, 1999	Sales of display products
LG Display Taiwan Co., Ltd.	Taipei, Taiwan	100	December	April 12, 1999	Sales of display products
LG Display Nanjing Co., Ltd.	Nanjing, China	100	December	July 15, 2002	Production of display products
LG Display Shanghai Co., Ltd.	Shanghai, China	100	December	January 16, 2003	Sales of display products
LG Display Guangzhou Co., Ltd.(*1)	Guangzhou, China	100	December	June 30, 2006	Production of display products
LG Display Shenzhen Co., Ltd.	Shenzhen, China	100	December	July 27, 2007	Sales of display products
LG Display Singapore Pte. Ltd.	Singapore	100	December	November 4, 2008	Sales of display products
L&T Display Technology (Fujian) Limited	Fujian, China	51	December	December 7, 2009	Production and sales of LCD module and LCD monitor sets
LG Display Yantai Co., Ltd.	Yantai, China	100	December	March 17, 2010	Production of display products
Nanumnuri Co., Ltd.	Gumi, South Korea	100	December	March 21, 2012	Business facility maintenance
LG Display (China) Co., Ltd.(1)(2)	Guangzhou, China	80	December	December 10, 2012	Production and sales of display products
Unified Innovative Technology, LLC	Wilmington, U.S.A.	100	December	March 12, 2014	Intellectual property management
LG Display Guangzhou Trading Co., Ltd.	Guangzhou, China	100	December	April 28, 2015	Sales of display products
Global OLED Technology, LLC	Sterling, U.S.A.	100	December	December 18, 2009	OLED intellectual property management
LG Display Vietnam Haiphong Co., Ltd.	Haiphong, Vietnam	100	December	May 5, 2016	Production and sales of display products
Suzhou Lehui Display Co., Ltd.	Suzhou, China	100	December	July 1, 2016	Production and sales of LCD module and LCD monitor sets
LG DISPLAY FUND I LLC(*3)	Wilmington, U.S.A.	100	December	May 1, 2018	Investment in venture business and technologies
LG Display High-Tech (China) Co., Ltd.	Guangzhou, China	70	December	July 11, 2018	Production and sales of display products

Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued

(b)

Consolidated Subsidiaries as of December 31, 2024, Continued

(*1)

For the year ended December 31, 2024, the contract to sell 80% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. was signed. As a result, the assets and liabilities held by LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets and liabilities held for sale.

(*2)

For the year ended December 31, 2024, the Group acquired 10% equity interests in LG Display (China) Co., Ltd. for 245,362 million from non-controlling shareholders.

(*3)

For the year ended December 31, 2024, the Parent Company contributed 6,831 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Parent Company’s percentage of ownership in LG DISPLAY FUND I LLC as a result of this additional investment.

In addition to the above subsidiaries, the Parent Company has invested 140,600 million in MMT (Money Market Trust), which is controlled by the Parent Company.

Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued

(c)

Summary of financial information (before the elimination of intercompany transactions) of subsidiaries as of and for the years ended December 31, 2024 and 2023 is as follows:


(In millions of won)	December 31, 2024						2024
Subsidiaries	Total assets		Total liabilities		Total shareholders’ equity		Sales		Net income (loss)
LG Display America, Inc.		2,433,349		2,367,143		66,206		15,218,449		12,662
LG Display Germany GmbH		571,085		535,427		35,658		1,514,282		3,555
LG Display Japan Co., Ltd.		215,670		201,213		14,457		1,045,036		2,420
LG Display Taiwan Co., Ltd.		807,931		780,043		27,888		2,569,859		2,819
LG Display Nanjing Co., Ltd.		3,188,176		2,249,586		938,590		1,841,645		103,023
LG Display Shanghai Co., Ltd.		192,973		166,757		26,216		890,982		4,286
LG Display Guangzhou Co., Ltd.(*)		2,603,086		1,984,854		618,232		2,306,421		44,772
LG Display Shenzhen Co., Ltd.		117,986		101,622		16,364		589,537		2,818
LG Display Singapore Pte. Ltd.		3,570,065		3,554,525		15,540		1,442,304		(6,018	)
L&T Display Technology (Fujian) Limited		345,309		242,376		102,933		851,228		18,251
LG Display Yantai Co., Ltd.		601,808		177,391		424,417		302,923		26,941
Nanumnuri Co., Ltd.		5,556		3,685		1,871		25,502		320
LG Display (China) Co., Ltd.(*)		2,237,053		276,308		1,960,745		1,477,381		46,621
Unified Innovative Technology, LLC		698		20		678		—		(523	)
LG Display Guangzhou Trading Co., Ltd.		3,594,526		3,462,995		131,531		400,592		39,474
Global OLED Technology, LLC		32,998		3,512		29,486		1,312		(11,966	)
LG Display Vietnam Haiphong Co., Ltd.		6,192,641		4,434,492		1,758,149		3,931,808		250,503
Suzhou Lehui Display Co., Ltd.		307,178		109,776		197,402		393,161		8,837
LG DISPLAY FUND I LLC		97,596		30		97,566		—		(3,164	)
LG Display High-Tech (China) Co., Ltd.		7,630,921		4,000,109		3,630,812		2,482,999		432,402

Total(*)		34,746,605		24,651,864		10,094,741		37,285,421		978,033

(*)

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued


(In millions of won)	December 31, 2023						2023
Subsidiaries	Total assets		Total liabilities		Total shareholders’ equity		Sales		Net income (loss)
LG Display America, Inc.		1,872,996		1,826,784		46,212		11,952,787		9,789
LG Display Germany GmbH		315,096		286,596		28,500		1,247,796		2,321
LG Display Japan Co., Ltd.		157,279		145,709		11,570		913,462		3,932
LG Display Taiwan Co., Ltd.		265,810		242,463		23,347		1,697,729		(1,744	)
LG Display Nanjing Co., Ltd.		3,731,464		2,986,076		745,388		1,764,307		85,121
LG Display Shanghai Co., Ltd.		334,278		314,805		19,473		797,516		3,822
LG Display Guangzhou Co., Ltd.		3,820,218		3,306,879		513,339		2,144,773		96,945
LG Display Shenzhen Co., Ltd.		97,514		85,518		11,996		453,174		1,735
LG Display Singapore Pte. Ltd.		760,769		741,604		19,165		1,147,311		3,689
L&T Display Technology (Fujian) Limited		309,340		221,293		88,047		960,302		25,079
LG Display Yantai Co., Ltd.		539,791		184,568		355,223		373,916		100,982
Nanumnuri Co., Ltd.		5,606		3,585		2,021		26,110		594
LG Display (China) Co., Ltd.		2,410,130		275,824		2,134,306		1,145,472		108,801
Unified Innovative Technology, LLC		1,093		—		1,093		—		(1,043	)
LG Display Guangzhou Trading Co., Ltd.		2,341,100		2,291,500		49,600		457,404		15,016
Global OLED Technology, LLC		40,786		3,576		37,210		3,861		(10,838	)
LG Display Vietnam Haiphong Co., Ltd.		5,918,634		4,614,173		1,304,461		2,773,046		159,089
Suzhou Lehui Display Co., Ltd.		284,364		115,169		169,195		414,537		7,739
LG DISPLAY FUND I LLC		82,099		14		82,085		—		(9,332	)
LG Display High-Tech (China) Co., Ltd.		6,417,671		3,565,229		2,852,442		2,432,838		374,836

Total		29,706,038		21,211,365		8,494,673		30,706,341		976,533

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued

(d)

Information of subsidiaries (before elimination of intercompany transactions) which have material non-controlling interests as of and for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	LG Display High-Tech (China) Co., Ltd.
	2024			2023
Percentage of ownership in non-controlling interests (%)		30			30
Current assets		5,666,246			3,796,310
Non-current assets		1,964,675			2,621,361
Current liabilities		2,193,788			978,596
Non-current liabilities		1,806,321			2,586,633
Net assets		3,630,812			2,852,442
Book value of non-controlling interests		1,087,857			854,346
Revenue		2,482,999			2,432,838
Profit for the year		432,402			374,836
Profit attributable to non-controlling interests		129,721			112,451
Cash flows from operating activities		1,252,886			777,354
Cash flows used in investing activities		(1,290,367	)		(979,167	)
Cash flows from (used in) financing activities		(213,400	)		365,898
Effect of exchange rate fluctuations on cash and cash equivalents		19,378			(3,571	)
Net increase (decrease) in cash and cash equivalents		(231,503	)		160,514
Cash and cash equivalents at January 1		314,075			153,561
Cash and cash equivalents at December 31		82,572			314,075

Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Presenting Financial Statements

(a)

Application of accounting standards

In accordance with the Act on External Audits of Stock Companies, Etc., these consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

The consolidated financial statements were authorized for issuance by the Board of Directors on January 20, 2025, which will be submitted for approval to the shareholders’ meeting to be held on March 20, 2025.

(b)

Basis of Measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the consolidated statement of financial position:

•

derivative financial instruments at fair value, financial assets at fair value through profit or loss (“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss (“FVTPL”), and

•

net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

(c)

Functional and Presentation Currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which each entity operates (the “functional currency”). The consolidated financial statements are presented in Korean won, which is the Parent Company’s functional and presentation currency.

(d)

Estimates and Judgments

As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

Estimates and assumptions are continuously evaluated and taken into account future events that are reasonably predictable in light of past experiences and current situations. Changes in accounting estimates are recognized during the period which the estimates have been changed and the future periods to be affected.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Presenting Financial Statements, Continued

(d)

Estimates and Judgments, Continued

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Additional information of significant judgement and assumptions of certain items are included in relevant notes.

(i)

Impairment of goodwill, etc.

The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use calculations (Note 10).

(ii)

Income Tax

The Group’s taxable income generated from these operations are subject to income taxes based on tax laws and interpretations of tax authorities in numerous jurisdictions. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Group estimates the income tax effects expected to be incurred in the future as a result of its operating activities up to the end of the reporting period, and recognizes them as current and deferred income taxes. However, the actual future income tax burden may not match the recognized related assets and liabilities, and such differences may affect the current and deferred income tax assets and liabilities at the time the expected income tax effects are realized.

In addition, deferred tax assets are recognized to the extent that it is probable that taxable income will be generated during the periods when temporary differences, unused tax losses, and tax credits are realized. Significant judgments are made to determine the book value of deferred tax assets that can be recognized based on the timing and level of future taxable income.

(iii)

Net defined benefit liabilities (defined benefit assets)

The present value of defined benefit obligations can vary depending on various factors determined by actuarial methods. The assumptions applied to determine the net cost (profit) of retirement benefits include the discount rate, which represents the interest rate that should be applied to determine the present value of the estimated future cash outflows expected to occur upon the settlement of defined benefit obligations. An appropriate discount rate is determined by considering the yield on high-quality corporate bonds with maturities similar to the duration of the related pension liabilities, expressed in the currency in which the pension is paid. Other key assumptions related to defined benefit obligations are based on current market conditions.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a)

Consolidation

(i)

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control is acquired until the date on which control is lost.

(ii)

Non-controlling interests

Non-controlling interests (“NCI”) are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date. Profit or loss and other comprehensive income (loss) of subsidiaries are attributed to owners of the Controlling Company and non-controlling interests.

Changes in the Group’s interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions.

(iii)

Loss of Control

If the Controlling Company loses control of subsidiaries, the Controlling Company derecognizes the assets and liabilities of the former subsidiaries from the consolidated statement of financial position and recognizes the gain or loss associated with the loss of control attributable to the former controlling interest. Meanwhile, the Controlling Company recognizes any investment retained in the former subsidiaries at its fair value when control is lost.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(a)

Consolidation, Continued

(iv)

Associates and joint ventures (equity method investees)

Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the parties have joint control, whereby the parties have rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Investments in associates and joint ventures are initially recognized at cost and subsequently accounted for using the equity method of accounting. The carrying amount of investments in associates and joint ventures is increased or decreased to recognize the Group’s share of the profits or losses and changes in the Group’s proportionate interest of the investee after the date of acquisition. Distributions received from an investee reduce the carrying amount of the investment.

If an associate or a joint venture uses accounting policies different from those of the Controlling Company for like transactions and events in similar circumstances, appropriate adjustments are made to the consolidated financial statements. As of and during the periods presented in the consolidated financial statements, no adjustments were made in applying the equity method.

When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

(v)

Transactions eliminated on consolidation

Intra-group balances and transactions, including income and expenses and any unrealized income and expenses and balance of trade accounts and notes receivable and payable arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(b)

Foreign Currency Translation

Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate on the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on translation are recognized in profit or loss, except for differences arising on an investment in equity instruments designated as at FVOCI and a financial asset and liability designated as a cash flow hedge, which are recognized in other comprehensive income. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition are recognized in profit or loss in the period in which they arise. Foreign currency differences arising from assets and liabilities in relation to the investing and financing activities including borrowings, bonds and cash and cash equivalents are recognized in finance income (costs) in the consolidated statement of comprehensive income (loss) and foreign currency differences arising from assets and liabilities in relation to activities other than investing and financing activities are recognized in other non-operating income (expense) in the consolidated statement of comprehensive income (loss). Foreign currency differences are presented in gross amounts in the consolidated statement of comprehensive income (loss).

If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial position and financial performance of the foreign operation are translated into the presentation currency using the following methods. The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy are translated to the Group’s functional currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the Group’s functional currency at exchange rates at the dates of the transactions and foreign currency differences are recognized in other comprehensive income (loss). Relevant proportionate shares of foreign currency differences are allocated to the controlling interests and non-controlling interests. When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group disposes part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate or joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and translated at the at each reporting date’s exchange rate.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(c)

Cash and cash equivalents

Cash and cash equivalents include all cash balances and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash.

(d)

Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted-average method, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated selling expenses. In the case of manufactured inventories and work-in-process, cost includes an appropriate share of production overheads based on the actual capacity of production facilities. However, the normal capacity is used for the allocation of fixed production overheads if the actual level of production is lower than the normal capacity.

(e)

Financial Instruments

(i)

Non-derivative financial assets

Recognition and initial measurement

Trade receivables and debt instruments issued are initially recognized when they are originated. All other financial assets are recognized in statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: financial assets at amortized cost; financial assets at FVOCI; financial assets at FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the subsequent reporting period following the change in the business model.

A financial asset is measured as at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

•

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

•

its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

•

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

•

the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured as at FVTPL. This includes all derivative financial assets. At initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

ii)

Financial assets: business model

The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

•

the stated policies and objectives for the portfolio and the operation of those policies in practice (these include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets);

•

how the performance of the portfolio is evaluated and reported to the Group’s management;

•

the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; and

•

the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sale for this purpose.

A financial asset that is held for trading or is managed and whose performance is evaluated on a fair value basis is measured at FVTPL.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

iii)

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purpose of the assessment, “principal” is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and cost (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:

•

contingent events that would change the amount or timing of cash flows:

•

terms that may adjust the contractual coupon rate, including variable-rate features;

•

prepayment and extension features; and

•

terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features)

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest or the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract.

Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued but unpaid contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

iv)

Financial assets: Subsequent measurement and gains and losses


Financial assets at FVTPL		These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost		These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Debt investments at FVOCI		These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

Derecognition

The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, it transfers the rights to receive the contractual cash flows of the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it transfers or does not retain substantially all the risks and rewards of ownership of a transferred asset, and does not retain control of the transferred asset.

If the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset.

(ii) Non-derivative financial liabilities

The Group classifies financial liabilities into two categories, financial liabilities at FVTPL and other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities, and recognizes them in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Financial liabilities at FVTPL include financial liabilities held for trading and designated as such upon initial recognition at FVTPL. After initial recognition, financial liabilities at FVOCI are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issuance of financial liabilities are recognized in profit or loss as incurred.

Non-derivative financial liabilities other than financial liabilities classified as at FVOCI are classified as other financial liabilities and measured initially at fair value minus transaction costs that are directly attributable to the issuance of financial liabilities. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. As of December 31, 2024, non-derivative financial liabilities comprise borrowings, bonds, trade accounts and notes payable, other accounts payable and others.

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

(iii) Derivative financial instruments

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.

Hedge Accounting

If necessary, the Group designates derivatives as hedging items to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Group’s management formally designates and documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship, both at the inception of the hedge relationship as well as on an ongoing basis.

i) Fair value hedges

Change in the fair value of a derivative hedging instrument designated as a fair value hedge and the hedged item is recognized in profit or loss, respectively. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the statement of comprehensive income (loss). The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

ii) Cash flow hedges

When a derivative designated as a cash flow hedging instrument meets the criteria of cash flow hedge accounting, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and the ineffective portion of changes in the fair value of the derivative is recognized in profit or loss. The Group discontinues cash flow hedge accounting if the hedging instruments expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.

Embedded derivative

Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Other derivative financial instruments

Other derivative financial instruments are measured at fair value and changes of their fair value are recognized in profit or loss.

(iv) Financial guarantee agreement

A financial guarantee agreement is a contract in which a certain amount of money must be paid to compensate for the loss incurred by the holder due to the failure of a particular debtor to pay on the due date in accordance with the terms of the original contract or the changed terms of the debt product. Financial guarantee contracts are measured at fair value at the time of initial recognition, and after initial recognition, they are measured by the higher of the following and displayed as ‘Financial Liabilities’ in the consolidated statement of financial position.

•

The amount determined in accordance with the expected credit loss model

•

The amount initially recognized less, where appropriate, the cumulative amount of income recognized in accordance with Korean IFRS 1115 Revenue from Contracts with Customers

(f)

Property, Plant and Equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and borrowing costs on qualifying assets.

The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other non-operating income or other non-operating expenses.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(f)

Property, Plant and Equipment, Continued

(ii) Subsequent costs

Subsequent expenditure on an item of property, plant and equipment is recognized as part of its cost only if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.

(iii) Depreciation

Land is not depreciated and depreciation of other items of property, plant and equipment is recognized in profit or loss on a straight-line basis, reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The residual value of property, plant and equipment is zero.

Typical estimated useful lives of the assets are as follows:


		Typical estimated useful lives (years)
Buildings and structures		20~40
Machinery		4, 5
Furniture and fixtures		4
Equipment, tools and vehicles		2, 4, 12
Right-of-use assets		(*)

(*)

The Group depreciates the right-of-use assets from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate and any changes are accounted for as changes in accounting estimates.

(g)

Borrowing Costs

The Group capitalizes borrowing costs, which includes interests and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs, directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. To the extent that the borrowings are directly attributable to the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Group immediately recognizes other borrowing costs as an expense.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(h)

Government Grants

In case there is reasonable assurance that the Group will comply with the conditions attached to a government grant, the government grant is recognized as follows:

(i) Grants related to the purchase or construction of assets

A government grant related to the purchase or construction of assets is deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense and cash related to grant received is presented in investing activities in the statement of cash flows.

(ii) Grants for compensating the Group’s expenses incurred

A government grant that compensates the Group for expenses incurred is recognized in profit or loss as a deduction from relevant expenses on a systematic basis in the periods in which the expenses are recognized.

(iii) Other government grants

A government grant that becomes receivable for the purpose of giving immediate financial support to the Group with no compensation for expenses or losses already incurred or no future related costs is recognized as other non-operating income of the period in which it becomes receivable.

(i)

Intangible Assets

Intangible assets are initially measured at cost. Subsequently, intangible assets are measured at cost less accumulated amortization and accumulated impairment losses.

(i) Goodwill

Goodwill arising from business combinations is recognized as the excess of the acquisition cost of a business over the net fair value of the identifiable assets acquired and liabilities assumed. Any deficit is a bargain purchase that is recognized in profit or loss. Goodwill is measured at cost less accumulated impairment losses.

(ii) Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as incurred. Development activities involve a plan or design of the production of new or substantially improved products and processes. Development expenditure is capitalized as intangible assets only if the Group can demonstrate all of the following:

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(i)

Intangible Assets, Continued

•

the technical feasibility of completing the intangible asset so that it will be available for use or sale,

•

its intention to complete the intangible asset and use or sell it,

•

its ability to use or sell the intangible asset,

•

how the intangible asset will generate probable future economic benefits (among other things, the Group can demonstrate the usefulness of the intangible asset by existence of a market for the output of the intangible asset or the intangible asset itself if it is to be used internally),

•

the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

•

its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Development projects are divided into research activities and development activities. Expenditures on research activities are recognized in profit or loss and qualifying development expenditures on development activities are capitalized.

The expenditure capitalized includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use and borrowing costs on qualifying assets.

(iii) Other intangible assets

Other intangible assets include intellectual property rights, software, customer relationships, technology, memberships and others. The Group currently has a number of patent license agreements related to product production. When the amount of payments is determined, it is recognized as intangible assets as intellectual property rights and other account payables, respectively, and the intangible assets are amortized on a straight-line basis over the patent license period.

(iv) Subsequent costs

Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific intangible asset to which they relate. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.

(v) Amortization

Amortization is calculated on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The residual value of intangible assets is zero. However, as there are no foreseeable limits to the periods over which condominium and golf club memberships are expected to be available for use, these intangible assets are regarded as having indefinite useful lives and not amortized.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(i)

Intangible Assets, Continued

Typical estimated useful lives of the intangible assets are as follows:


		Typical estimated useful lives (years)
Intellectual property rights		5, 10, (*1)
Software		4, (*1)
Technology		10
Development costs		(*2)
Condominium and golf club memberships		Indefinite

(*1)

Patent royalty (included in intellectual property rights) and software license are amortized over the useful lives considering the contract period.

(*2)

Capitalized development costs are amortized over the useful lives considering the life cycle of the developed products.

Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at each financial year-end. The useful lives of intangible assets with indefinite useful lives are reviewed at each financial year-end to determine whether events and circumstances continue to support indefinite useful life assessments for those assets. If appropriate, the changes are accounted for as changes in accounting estimates.

(j)

Investment Property

Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment properties are initially measured at cost, including transaction costs incurred at the time of acquisition, and subsequently, measured at cost less accumulated depreciation and accumulated impairment loss.

Subsequent expenditure on an item of investment property is recognized as part of its cost only if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognized. All other subsequent expenditures are expensed in the period in which it is incurred.

Among investment properties, land is not depreciated, and investment properties except land are depreciated on a straight-line basis by applying 20 years of the building according to the economic depreciation period. Depreciation methods, useful lives and residual values of investment properties are reviewed at each reporting period-end and if appropriate, the changes are accounted for as changes in accounting estimates.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(k)

Impairment

(i) Financial assets

Financial instruments and contract assets

The Group recognizes loss allowance for financial assets measured at amortized cost and debt investments at FVOCI at the ‘expected credit loss’ (ECL).

The Group recognizes a loss allowance for the life-time expected credit losses except for following, which are measured at 12-month ECLs:

•

debt instruments that are determined to have low credit risk at the reporting date; and

•

other debt instruments and bank deposits for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both qualitative and quantitative information and analysis, based on the Group’s historical experience and informed credit assessment including forward-looking information.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of the ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(k)

Impairment, Continued

Estimation of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured using the present value of the difference between the contractual cash flows and the expected contractual cash flows. The expected credit losses are discounted using effective interest rate of the financial assets.

Credit-impaired financial assets

At each reporting period-end, the Group assesses whether financial assets carried at amortized cost and debt instruments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

•

significant financial difficulty of the issuer or the borrower;

•

the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

•

it is probable that the borrower will enter bankruptcy or other financial reorganization; or

•

the disappearance of an active market for a security because of financial difficulties.

Presentation of loss allowance for ECL in the consolidated statement of financial position

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt instruments at FVOCI, the loss allowance is charged to profit or loss and is recognized in OCI instead of reducing the carrying amount of financial assets in the consolidated statement of financial position.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations for recovering the financial asset in its entirety or a portion thereof. The Group assess whether there are reasonable expectations of recovering the contractual cash flows from customers and individually assess the timing and amount of write-off. The Group expects no significant recovery from the amount written-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(k)

Impairment, Continued

(ii) Non-financial assets

The carrying amounts of the Group’s non-financial assets, other than assets arising from employee benefits, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, the recoverable amount is estimated each year.

Recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit (“CGU”) is the smallest group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In identifying whether cash inflows from an asset or group of assets are largely independent of the cash inflows from other assets or groups of assets, the Group considers various factors including how management monitors the entity’s operations or how management makes decisions about continuing or disposing of the entity’s assets and operations. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or cash-generating unit is determined as the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Fair value less costs to sell is based on the best information available to reflect the amount that the Group could obtain from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal.

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of a CGU are allocated first to reduce the carrying amount of any goodwill allocated to the unit, and then to reduce the carrying amounts of the other assets in the unit on a pro rata basis.

In respect of assets other than goodwill, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of accumulated depreciation or amortization, if no impairment loss had been recognized from the acquisition cost. An impairment loss in respect of goodwill is not reversed.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(l)

Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a lessee

At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of its relative stand-alone price. For certain leases, the Group accounts for the lease and non-lease components as a single lease component by applying the practical expedient not to separate non-lease components.

The Group recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

•

fixed payments, including in-substance fixed payments;

•

variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

•

amounts expected to be payable under a residual value guarantee; and

•

the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(l)

Leases, Continued

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured, the Group recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Group recognizes any remaining amount of the remeasurement in profit or loss.

The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and lease liabilities in ‘financial liabilities’ in the consolidated statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

At the commencement date, the Group recognizes assets held under a finance lease in its consolidated statement of financial position and present them as a receivable at an amount equal to the net investment in the lease and recognize finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease.

The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue’.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(m)

Provisions

A provision is recognized as a result of a past event, if the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The unwinding of the discount is recognized as finance cost.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

The Group recognizes a liability for warranty obligations based on the estimated costs expected to be incurred under its basic limited warranty. This warranty covers defective products and is normally applicable for a warranty period from the date of purchase. These liabilities are accrued when product revenues are recognized. Factors that affect the Group’s warranty liability include historical and anticipated rates of warranty claims on those repairs and cost per claim to satisfy the Group’s warranty obligation. Warranty costs primarily include raw materials and labor costs. As these factors are impacted by actual experience and future expectations, management periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Accrued warranty obligations are included in the current and non-current provisions.

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.

(n)

Non-current Assets (liabilities) Held for Sale

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily from sale rather than through continuing use. In order to be classified as held for sale, the asset (or disposal group) is available for immediate sale in its present condition and its sale is highly probable. The assets (or disposal groups) that are classified as non-current assets (liabilities) held for sale are measured at the lower of their carrying amount and fair value less costs to sell on initial classification. The Group recognizes an impairment loss for any subsequent decrease in fair value of the asset (or disposal group) for which an impairment loss was recognized on initial classification as held-for-sale and a gain for any subsequent increase in fair value in profit or losses, up to the cumulative impairment loss previously recognized.

The Group does not depreciate a non-current asset while it is classified as held for sale or while it is part of a disposal group classified as held for sale.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(o)

Employee Benefits

(i) Short-term employee benefits

Short-term employee benefits that are due to be settled within twelve months after the end of the period in which the employees render the related service are recognized in profit or loss on an undiscounted basis. The expected cost of profit-sharing and bonus plans and others are recognized when the Group has a present legal or constructive obligation to make payments as a result of past events and a reliable estimate of the obligation can be made.

(ii) Other long-term employee benefits

The Group’s net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods.

(iii) Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees.

(iv) Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than defined contribution plans. The Group’s net obligation in respect of its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plan assets is deducted.

The calculation is performed annually by an independent actuary using the projected unit credit method. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Group recognizes remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions related to the defined benefit plans in other comprehensive income and transfers immediately to retained earnings.

The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Consequently, the net interest on the net defined benefit liability (asset) now comprises: interest cost on the defined benefit obligation, interest income on plan assets, and interest on the effect on the asset ceiling.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(o)

Employee Benefits, Continued

(v) Termination benefits

The Group recognizes expense for termination benefits at the earlier of the date when the entity can no longer withdraw the offer of those benefits and when the entity recognizes costs for a restructuring involving the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, the Group measures the termination benefit with present value of future cash payments.

(p)

Revenue from contracts with customers

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of estimated returns, trade discounts, volume rebates and other cash incentives paid to customers.

The Group recognizes revenue according to the five stage revenue recognition model (① Identifying the contract®② Identifying performance obligations ®③ Determining transaction price®④ Allocating the transaction price to performance obligations ®⑤ Recognizing revenue for performance obligations).

The Group generates revenue primarily from sale of display panels. Product revenue is recognized when a customer obtains control over the Group’s products, which typically occurs upon shipment or delivery depending on the terms of the contracts with the customer.

The Group includes return option in the sales contract of display panels with its customers and the consideration receivable from the customer is subject to change due to returns. The Group estimates an amount of variable consideration by using the expected value method with which the Group expects to better predict the amount of consideration. The Group includes in the transaction price an amount of variable consideration estimated only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur during the return period when the uncertainty associated with the variable consideration is subsequently resolved. The Group recognizes a refund liability and an asset for its right to recover products from customers if the Group receives consideration from a customer and expects to refund some or all of that consideration to the customer. Sales taxes or value-added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and are excluded from revenues in the consolidated statement of comprehensive income (loss).

(q)

Operating Segments

An operating segment is a component of the Group that: 1) engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with other components of the group, 2) whose operating results are reviewed regularly by the Group’s chief operating decision maker (“CODM”) in order to allocate resources and assess its performance, and 3) for which discrete financial information is available. Management has determined that the CODM of the Group is the Board of Directors. The CODM does not receive and therefore does not review discrete financial information for any component of the Group. Consequently, no operating segment information is included in these consolidated financial statements. Entity wide disclosures of geographic and product revenue information are provided in Note 18 to these consolidated financial statements.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(r)

Finance Income and Finance Costs

Finance income comprises interest income on funds invested (including debt instruments measured at FVOCI), dividend income, gains on disposal of debt instruments measured at FVOCI and changes in fair value of financial instruments at FVTPL. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Group’s right to receive payment is established.

Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, gain and losses from financial instruments measured at FVTPL and impairment losses recognized on financial assets. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset.

(s)

Income Tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

(i) Current tax

Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.

(ii) Deferred tax

Deferred tax is recognized, using the asset and liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(s)

Income Tax, Continued

The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that the differences relating to investments in subsidiaries, associates and joint ventures will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

The Group reviews the carrying amount of deferred tax assets at the end of each reporting period, considering the likelihood of generating taxable income against which temporary differences, unused tax loss carryforwards, and tax credit carryforwards can be utilized. The potential taxable income is estimated based on business plans approved by management, historical experience of taxable income estimates, and tax policies including the transfer pricing of the consolidated entity. Additionally, future taxable income includes the anticipated permanent differences, considering the realization effect of temporary differences consistent with the business plan and the dividend policy of the consolidated entity. The Group recognizes deferred tax assets to the extent that it is probable that sufficient taxable income will be generated in the future, or there are sufficient taxable temporary differences available to utilize unused tax losses, etc.

The Group offsets deferred tax assets and deferred tax liabilities if, and only if the Group has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously.

(t)

Earnings Per Share

The Controlling Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Controlling Company by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding, adjusted for the effects of all dilutive potential common shares such as convertible bonds and others.

(u)

Accounting standards and Interpretation issued and adopted by the Group

The Group has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2024.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(u)

Accounting standards and Interpretation issued and adopted by the Group, Continued

(i)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, and Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the financial statements.

(ii)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. (See Note 26)

(iii)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the financial statements.

(iv)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the financial statements.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(v)

New standards and interpretations not yet adopted by the Group

The following new accounting standards and interpretations have been published that are not mandatory for December 31, 2024 reporting periods and have not been early adopted by the Group.

(i)

Amendments to Korean IFRS 1021 Effect of Exchange Rate Fluctuations, Amendments to Korean IFRS 1101 First Adoption of International Generally Accepted Accounting Principles Adopted by Korea – Lack of exchangeability

The amendment requires the entity to disclose the relevant information when an entity estimates a spot exchange rate because the exchangeability between two currencies is lacking. The amendments will take effect in fiscal years beginning on or after January 1, 2025, and will allow for early application. The amendments do not have a significant impact on the financial statements.

(ii)

Amendments to Korean IFRS 1109 Financial Instruments, Amendments to Korean IFRS 1107 Financial Instruments: Disclosure

Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted.

•

Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system

•

Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion

•

Add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term

•

Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI)

(iii)

Annual Improvement to Korean IFRS – Volume 11

Annual Improvement to Korean IFRS – Volume 11 shall be effective for fiscal years beginning on or after January 1, 2026, and early application is effective. The amendments are not expected to have a significant impact on the financial statements.

•

Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards: Hedge accounting by a first-time adopter

•

Korean IFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition and implementation guidance

•

Korean IFRS 1109 Financial Instruments: Derecognition of lease liabilities and definition of transaction price

•

Korean IFRS 1110 Consolidated Financial Statements: Determination of a ‘de facto agent’

•

Korean IFRS 1007 Statement of Cash Flows: Cost method

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

4.	Cash and Cash Equivalents and Deposits in Banks

Details of Cash and cash equivalents and deposits in banks as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Current assets
Cash and cash equivalents
Cash		—		3
Deposits (*1)		2,021,640		2,257,519

Total		2,021,640		2,257,522

Deposits in banks
Time deposits (*2)		600		905,971
Non-current assets
Deposits in banks
Deposit for checking account		11		11

(*1)	As of December 31, 2024, deposits of 158,415 million are classified as assets held for sale.

(*2)	As of December 31, 2023, it includes funds deposited under agreements on mutually beneficial cooperation to aid LG Group companies’ suppliers, restricted deposits pledged to guarantee the Parent Company and subsidiaries’ borrowings and others.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade Accounts and Notes Receivable, and Other Accounts Receivable

(a)

Details of trade accounts and notes receivable and other accounts receivable as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Trade accounts and notes receivable		3,624,477		3,218,093

Other accounts receivable
Non-trade receivables, net		227,477		112,739
Accrued income, net		22,552		14,246

Subtotal		250,029		126,985

Total		3,874,506		3,345,078

(b)

The aging of trade accounts and notes receivable, and other accounts receivable as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024
	Original amount				Allowance for doubtful account
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due		3,609,870		207,928		(1,369	)		(464	)
1-15 days past due		15,951		37,722		(14	)		(2	)
16-30 days past due		4		1,915		—			(1	)
31-60 days past due		35		350		—			(3	)
More than 60 days past due		—		2,592		—			(8	)

Total		3,625,860		250,507		(1,383	)		(478	)


(In millions of won)	December 31, 2023
	Original amount				Allowance for doubtful account
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due		3,212,514		123,919		(932	)		(191	)
1-15 days past due		3,077		1,357		(1	)		—
16-30 days past due		3,435		156		—			(2	)
31-60 days past due		—		168		—			(2	)
More than 60 days past due		—		1,592		—			(12	)

Total		3,219,026		127,192		(933	)		(207	)

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade Accounts and Notes Receivable, and Other Accounts Receivable, Continued

The movement in the allowance for doubtful account in respect of trade accounts and notes receivable and other accounts receivable for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024				2023
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable		Other accounts receivable
Beginning balance		933		207		875		1,778
(Reversal of) bad debt expense		450		271		58		(239	)
Write-off		—		—		—		(1,332	)

Ending balance		1,383		478		933		207

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

6.	Other Financial Assets

Details of other financial assets as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024		December 31, 2023
Current assets
Financial assets at fair value through profit or loss
Derivatives (*1)		186,676		136,762

Fair value hedging derivatives
Derivatives (*2)		99,116		—

Financial assets at amortized cost
Deposits		10,429		1,356
Short-term loans		26,098		26,375

Subtotal		36,527		27,731

Other financial assets
Lease receivables		6,302		4,130

Total		328,621		168,623

Non-current assets
Financial assets at fair value through profit or loss
Equity securities		120,501		87,027
Convertible securities		1,470		3,127
Derivatives (*1)		69,575		32,941

Subtotal		191,546		123,095

Fair value hedging derivatives
Derivatives (*2)		19,982		—

Financial assets at amortized cost
Deposits		6,318		17,022
Long-term loans		11,045		33,509

Subtotal		17,363		50,531

Other financial assets
Lease receivables		3,761		—

Total		232,652		173,626

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest rate swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

7.	Inventories

Details of inventories as of December 31, 2024 and 2023 are as follows:

(i) As of December 31, 2024


(In millions of won)	Cost		Valuation allowance			Carrying amount
Finished goods		995,999		(51,305	)		944,694
Work-in-process		1,184,516		(82,655	)		1,101,861
Raw materials		477,929		(17,648	)		460,281
Supplies		184,869		(20,463	)		164,406

Total		2,843,313		(172,071	)		2,671,242

(ii) As of December 31, 2023


(In millions of won)	Cost		Valuation allowance			Carrying amount
Finished goods		811,580		(60,805	)		750,775
Work-in-process		1,222,991		(77,385	)		1,145,606
Raw materials		485,876		(28,520	)		457,356
Supplies		199,908		(25,917	)		173,991

Total		2,720,355		(192,627	)		2,527,728

For the years ended December 31, 2024 and 2023, the amount of inventories recognized as expense and reversal of loss on valuation of inventories are as follows:


(In millions of won)	2024			2023
Cost of sales		24,039,928			20,985,643
Inventories recognized as expense		24,057,293			21,039,266
Reversal of loss on valuation of inventories		(17,365	)		(53,623	)

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments in Equity Accounted Investees

(a)

Details of investments in associates as of December 31, 2024 and 2023, are as follows:


(In millions of won)
Associates	Location	Closing		Date of incorporation	Business	December 31, 2024					December 31, 2023
Associates	Location	Closing		Date of incorporation	Business	Percentage of ownership			Carrying amount		Percentage of ownership			Carrying amount
Paju Electric Glass Co., Ltd.	Paju, South Korea		December	January 2005	Production of glass for display		40	%		29,479		40	%		24,200
WooRee E&L Co., Ltd. (*1)	Ansan, South Korea		December	June 2008	Production of LED back light unit packages		—			—		13	%		7,106
YAS Co., Ltd. (*1)	Paju, South Korea		December	April 2002	Development and production of deposition equipment for OLEDs		—			—		16	%		28,564
AVATEC Co., Ltd. (*1)	Daegu, South Korea		December	August 2000	Processing and sales of glass for display		—			—		14	%		20,871
Arctic Sentinel, Inc.	Los Angeles, U.S.A.		March	June 2008	Development and production of tablet for kids		10	%		—		10	%		—
Cynora GmbH	Bruchsal, Germany		December	March 2003	Development of organic light emitting materials for displays and lighting devices		10	%		—		10	%		—
Material Science Co., Ltd.(*2)	Seoul, South Korea		December	January 2014	Development, production, and sales of materials for display		14	%		3,698		16	%		3,588

Total										33,177					84,329

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments in Equity Accounted Investees, Continued

(*1)	For the year ended December 31, 2024, due to loss of significant influence, it has been reclassified from Investments in associates to financial assets at fair value through profit or loss.

(*2)	For the year ended December 31, 2024, due to the investee’s disposal of treasury shares, the Parent Company’s percentage of ownership decreased from 16% to 14%.

Although the Parent Company’s respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Parent Company is able to exercise significant influence through its right to appoint one or more directors to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

Dividend income recognized from associates for the year ended December 31, 2024 amounted to 200 million (dividend income recognized from associates for the year ended December 31, 2023 : 15,200 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments in Equity Accounted Investees, Continued

(b)

Summary of financial information as of and for the years ended December 31, 2024 and 2023 of the significant associate is as follows:

Paju Electric Glass Co., Ltd.


(In millions of won)	December 31, 2024		December 31, 2023
Total assets		123,520		109,992
Current assets		110,055		94,705
Non-current assets		13,465		15,287
Total liabilities		48,088		47,875
Current liabilities		47,418		47,459
Non-current liabilities		670		416
Revenue		277,093		184,880
Profit (loss) for the year		10,015		(2,655	)
Other comprehensive income (loss)		3,301		(4,894	)
Total comprehensive loss		13,316		(7,549	)

(c)

Reconciliation from financial information of the significant associate to its carrying amount in the consolidated financial statements as of December 31, 2024 and 2023 is as follows:

(i)

As of December 31, 2024


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Intra-group transaction			Carrying amount
Paju Electric Glass Co., Ltd.		75,432		40	%		30,173		(694	)		29,479

(ii)

As of December 31, 2023


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Intra-group transaction			Carrying amount
Paju Electric Glass Co., Ltd.		62,117		40	%		24,847		(647	)		24,200

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments in Equity Accounted Investees, Continued

(d)

Carrying amount of other associates, in aggregate, as of December 31, 2024 and 2023 is as follows:

(i)

As of December 31, 2024

(In millions of won)

Book value

Net profit (loss) of associates
(applying ownership interest)

Profit (loss) for
the year

Other
comprehensive
income (loss)

Total
comprehensive
income (loss)

Other associates

3,698

1,455

1,912

3,367

(ii)

As of December 31, 2023


(In millions of won)
	Book value		Net profit (loss) of associates (applying ownership interest)
	Book value		Profit (loss) for the year			Other comprehensive income (loss)			Total comprehensive income (loss)
Other associates		60,129		(1,634	)		(722	)		(2,356	)

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments in Equity Accounted Investees, Continued

(e)

Changes in investments in associates accounted for using the equity method for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
		2024
Company		January 1		Disposals and others			Dividends received			Equity income on investments		Other comprehensive income		Other gain		December 31
Associates	Paju Electric Glass Co., Ltd.		24,200		—			—			3,957		1,322		—		29,479
	Others		60,129		(60,581	)		(200	)		1,455		1,912		983		3,698

Total			84,329		(60,581	)		(200	)		5,412		3,234		983		33,177


(In millions of won)
		2023
Company		January 1		Dividends received			Equity loss on investments			Other comprehensive loss			Other loss			December 31
Associates	Paju Electric Glass Co., Ltd.		42,784		(15,200	)		(1,427	)		(1,957	)		—			24,200
	Others		66,335		—			(1,634	)		(722	)		(3,850	)		60,129

Total			109,119		(15,200	)		(3,061	)		(2,679	)		(3,850	)		84,329

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

9.	Property, Plant and Equipment

(a)

Changes in property, plant and equipment for the years ended December 31, 2024 and 2023 are as follows:

(i)

2024


(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction- in-progress (*1)			Right-of-use asset			Others (*2)			Total
Acquisition cost as of January 1, 2024		472,813			10,192,281			52,107,890			942,376			7,571,687			245,149			1,448,688			72,980,884
Accumulated depreciation as of January 1, 2024		—			(4,715,087	)		(43,466,025	)		(775,953	)		—			(119,804	)		(1,062,377	)		(50,139,246	)
Accumulated impairment loss as of January 1, 2024		—			(447,003	)		(1,860,182	)		(13,285	)		(285,626	)		(6,099	)		(29,111	)		(2,641,306	)

Book value as of January 1, 2024		472,813			5,030,191			6,781,683			153,138			7,286,061			119,246			357,200			20,200,332

Additions		—			—			—			—			1,499,468			33,865			—			1,533,333
Depreciation (*3)		—			(444,982	)		(3,424,197	)		(80,195	)		—			(68,445	)		(305,354	)		(4,323,173	)
Disposals		(47,344	)		(28,598	)		(132,473	)		(178	)		—			—			(52,377	)		(260,970	)
Impairment loss (*4)		—			(28	)		(58,660	)		(1,275	)		(27,000	)		—			(7,249	)		(94,212	)
Others (*5)		873			948,851			4,186,807			42,191			(5,565,372	)		—			385,812			(838	)
Government grants received		—			—			(2,307	)		—			—			—			—			(2,307	)
Effect of movements in exchange rates		—			265,665			350,074			7,520			106,339			23,058			9,741			762,397
Classified as held for sale		—			(545,867	)		(24,526	)		(4,050	)		(9,778	)		(18,791	)		(8,677	)		(611,689	)

Book value as of December 31, 2024		426,342			5,225,232			7,676,401			117,151			3,289,718			88,933			379,096			17,202,873

Acquisition cost as of December 31, 2024		426,342			10,529,816			53,029,839			925,048			3,581,525			225,250			1,570,421			70,288,241

Accumulated depreciation as of December 31, 2024		—			(4,813,622	)		(43,403,177	)		(793,522	)		—			(129,395	)		(1,161,523	)		(50,301,239	)

Accumulated impairment loss as of December 31, 2024		—			(490,962	)		(1,950,261	)		(14,375	)		(291,807	)		(6,922	)		(29,802	)		(2,784,129	)

(*1)	As of December 31, 2024, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)	Others mainly consist of tools and equipment.

(*3)	The Group has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

(*4)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5)	Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

9.	Property, Plant and Equipment, Continued

(ii)

2023


(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction- in-progress (*1)			Right-of-use asset			Others (*2)			Total
Acquisition cost as of January 1, 2023		476,045			8,699,292			50,722,745			902,477			10,145,865			271,761			1,299,892			72,518,077
Accumulated depreciation as of January 1, 2023		—			(4,348,201	)		(42,744,139	)		(719,862	)		—			(151,550	)		(962,598	)		(48,926,350	)
Accumulated impairment loss as of January 1, 2023		—			(447,145	)		(1,794,407	)		(13,397	)		(356,155	)		(7,553	)		(26,137	)		(2,644,794	)

Book value as of January 1, 2023		476,045			3,903,946			6,184,199			169,218			9,789,710			112,658			311,157			20,946,933

Additions		—			—			—			—			3,392,876			74,611			—			3,467,487
Depreciation (*3)		—			(376,264	)		(2,837,242	)		(75,727	)		—			(68,349	)		(279,200	)		(3,636,782	)
Disposals		(330	)		(758	)		(506,420	)		(1,896	)		—			—			(43,368	)		(552,772	)
Impairment loss(*4)		—			8			(53,513	)		(6	)		—			—			(6,554	)		(60,065	)
Others (*5)		(2,902	)		1,494,070			3,963,010			60,585			(5,900,151	)		—			374,182			(11,206	)
Government grants received		—			—			(7,417	)		—			—			—			—			(7,417	)
Effect of movements in exchange rates		—			9,189			39,066			964			3,626			326			983			54,154

Book value as of December 31, 2023		472,813			5,030,191			6,781,683			153,138			7,286,061			119,246			357,200			20,200,332

Acquisition cost as of December 31, 2023		472,813			10,192,281			52,107,890			942,376			7,571,687			245,149			1,448,688			72,980,884

Accumulated depreciation as of December 31, 2023		—			(4,715,087	)		(43,466,025	)		(775,953	)		—			(119,804	)		(1,062,377	)		(50,139,246	)

Accumulated impairment loss as of December 31, 2023		—			(447,003	)		(1,860,182	)		(13,285	)		(285,626	)		(6,099	)		(29,111	)		(2,641,306	)

(*1)	As of December 31, 2023, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)	Others mainly consist of tools and equipment.

(*3)	The Group has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

(*4)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5)	Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

9.	Property, Plant and Equipment, Continued

(b)

Capitalized borrowing costs and capitalization rate for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Capitalized borrowing costs		41,826			258,168
Capitalization rate		5.64	%		5.18	%

(c)

The Group provides a portion of property, plant and equipment as an operating lease. For the year ended December 31, 2024, rental income from property, plant and equipment is 1,755 million (2023: 2,271 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets

(a)

Changes in intangible assets for the years ended December 31, 2024 and 2023 are as follows:

(i)

2024


(In millions of won)	Intellectual property rights			Software			Memberships			Development costs			Construction-in- progress			Technology			Goodwill			Total
Acquisition cost as of January 1, 2024		2,189,071			1,403,157			23,463			2,295,468			33,036			12,763			109,115			6,066,073
Accumulated amortization as of January 1, 2024		(1,299,655	)		(1,160,702	)		—			(1,509,575	)		—			(11,574	)		—			(3,981,506	)
Accumulated impairment loss as of January 1, 2024		(60,637	)		(19,001	)		(1,541	)		(144,432	)		—			(43	)		(84,958	)		(310,612	)

Book value as of January 1, 2024		828,779			223,454			21,922			641,461			33,036			1,146			24,157			1,773,955
Additions - internally generated		—			—			—			548,224			—			—			—			548,224
Additions - external purchases		49,818			—			—			—			110,616			—			—			160,434
Amortization (*1)		(188,058	)		(122,539	)		—			(546,377	)		—			(164	)		—			(857,138	)
Disposals		—			(187	)		(6,433	)		—			—			—			—			(6,620	)
Impairment loss (*2)		(1,931	)		(4,517	)		—			(66,028	)		—			—			—			(72,476	)
Others (*3)		—			128,986			—			—			(128,148	)		—			—			838
Effect of movements in exchange rates		1,224			5,568			73			—			24			—			5,076			11,965
Classified as held for sale		—			(775	)		—			—			—			—			—			(775	)

Book value as of December 31, 2024		689,832			229,990			15,562			577,280			15,528			982			29,233			1,558,407

Acquisition cost as of December 31, 2024		2,275,735			1,482,559			15,562			2,357,041			15,528			12,763			114,191			6,273,379

Accumulated amortization as of December 31, 2024		(1,525,276	)		(1,228,377	)		—			(1,715,408	)		—			(11,738	)		—			(4,480,799	)

Accumulated impairment loss as of December 31, 2024		(60,627	)		(24,192	)		—			(64,353	)		—			(43	)		(84,958	)		(234,173	)

(*1)	The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses.

(*2)	The Group recognized an impairment loss amounting to 66,028 million for development projects which are not likely to generate probable future economic benefits.

(*3)	Others mainly represent the reclassification of construction-in-progress to intangible assets.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(ii)

2023


(In millions of won)	Intellectual property rights			Software			Memberships			Development costs			Construction-in- progress			Technology			Goodwill			Total
Acquisition cost as of January 1, 2023		2,074,083			1,340,637			27,170			2,016,477			28,169			12,763			108,519			5,607,818
Accumulated amortization as of January 1, 2023		(1,115,014	)		(1,108,459	)		—			(1,358,446	)		—			(11,411	)		—			(3,593,330	)
Accumulated impairment loss as of January 1, 2023		(61,413	)		(20,605	)		(1,700	)		(92,812	)		—			(43	)		(84,958	)		(261,531	)

Book value as of January 1, 2023		897,656			211,573			25,470			565,219			28,169			1,309			23,561			1,752,957
Additions – internally generated		—			—			—			493,608			—			—			—			493,608
Additions – external purchases		118,344			—			—			—			117,443			—			—			235,787
Amortization (*1)		(187,819	)		(105,285	)		—			(363,162	)		—			(163	)		—			(656,429	)
Disposals		(202	)		(396	)		(3,796	)		—			—			—			—			(4,394	)
Impairment loss (*2)		(1,633	)		(425	)		242			(52,775	)		—			—			—			(54,591	)
Others (*3)		—			115,275			—			(1,429	)		(112,568	)		—			—			1,278
Effect of movements in exchange rates		2,433			2,712			6			—			(8	)		—			596			5,739

Book value as of December 31, 2023		828,779			223,454			21,922			641,461			33,036			1,146			24,157			1,773,955

Acquisition cost as of December 31, 2023		2,189,071			1,403,157			23,463			2,295,468			33,036			12,763			109,115			6,066,073

Accumulated amortization as of December 31, 2023		(1,299,655	)		(1,160,702	)		—			(1,509,575	)		—			(11,574	)		—			(3,981,506	)

Accumulated impairment loss as of December 31, 2023		(60,637	)		(19,001	)		(1,541	)		(144,432	)		—			(43	)		(84,958	)		(310,612	)

(*1)	The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses.

(*2)	The Group recognized an impairment loss amounting to 52,775 million for development projects which are not likely to generate probable future economic benefits.

(*3)	Others mainly represent the reclassification of construction-in-progress to intangible assets.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(b)

The book value and remaining amortization period of development costs and intellectual property rights as of December 31, 2024 and 2023 are as follows:

Development costs

(i)

As of December 31, 2024


(In millions of won and in years)
Classification	Category	Book Value		Remaining amortization period(*)
Development completed	TV		49,705		0.8
	IT		49,615		0.7
	Mobile and others		255,128		2.7

	Subtotal		354,448

Development in process	TV		14,802		—
	IT		37,737		—
	Mobile and others		170,293		—

	Subtotal		222,832

	Total		577,280

(*)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each product has a different remaining amortization period.

(ii)

As of December 31, 2023


(In millions of won and in years)
Classification	Category	Book Value		Remaining amortization period(*)
Development completed	TV		43,956		0.8
	IT		63,049		0.6
	Mobile and others		190,487		3.0

	Subtotal		297,492

Development in process	TV		46,368		—
	IT		175,023		—
	Mobile and others		122,578		—

	Subtotal		343,969

	Total		641,461

(*)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each product has a different remaining amortization period.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

Intellectual property rights

(i) As of December 31, 2024


(In millions of won and in years)
Classification	Category	Book Value		Remaining amortization period (*1)
Patent	Direct additions		237,364		7.0
	Licenses agreement (*2)		449,617		5.1

	Subtotal		686,981

Other			2,851		3.7

	Total		689,832

(*1)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each patent has a different remaining amortization period.

(*2)	The Group’s rights under contracts with the patent company.

(ii)

As of December 31, 2023


(In millions of won and in years)
Classification	Category	Book Value		Remaining amortization period (*1)
Patent	Direct additions		214,634		7.1
	Licenses agreement (*2)		611,801		5.5

	Subtotal		826,435

Other			2,344		3.6

	Total		828,779

(*1)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each patent has a different remaining amortization period.

(*2)	The Group’s rights under contracts with the patent company.

(c)

The total amount of research and development expenditure recognized as an expense for the year ended December 31, 2024 is 1,447,706 million (2023: 1,379,653 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(d)

Details of impairment assessment on CGU

As of December 31, 2024, the Group’s cash-generating units consist of Display CGU, Display (Large OLED) CGU and Display (AD PO) CGU. As of December 31, 2024, the Group performed impairment assessment for Display CGU, Display (Large OLED) CGU and Display (AD PO) CGU. All the goodwill balance as of December 31, 2024 is allocated to the Display CGU.

The recoverable amount of CGU is determined based on its value in use. Value in use is calculated using the estimated cash flow based on 5-year business plan approved by management. The estimated revenue and operating expenditures of the Group’s products used in the forecast was determined considering external sources and the Group’s historical experience. Management estimated the future cash flows based on its past performance and forecasts on market growth. The key assumptions used in the estimation of value in use for Display CGU include revenue and operating expenditures for the forecast period and discount rate. Terminal growth rate and the discount rate used in the estimation of value in use are as follows.


Classification	Pre-tax discount rate(*)			Post-tax discount rate(*)			Terminal growth rate
Display CGU		9.3	%		7.6	%		1.0	%
Display (Large OLED) CGU		9.5	%		7.6	%		1.0	%
Display (AD PO) CGU		9.9	%		7.6	%		0.0	%

(*)

The discount rate was calculated using the weighted average cost of equity capital and debt and the beta of equity capital was calculated as the average of seven global listed companies in the same industry and the Group. Cost of debt was calculated using the yield rate of non-guaranteed corporate bond considering the Group’s credit rating and debt ratio was determined using the average of the debt ratios of the seven global listed companies in the same industry and the Group. The Group calculates the value in use of the CGU using post-tax cash flows and a post-tax discount rate, and the result is not significantly different from the value in use calculated using pre-tax cash flows and pre-tax discount rate.

As a result of impairment assessment for Display CGU to which goodwill is allocated the recoverable amount exceeded its carrying amount by 1,250,028 million. Management has identified that a reasonably possible change in certain key assumption could cause the carrying amount to exceed the recoverable amount. The value in use determined for this CGU is sensitive to the discount rate used in the discounted cash flow model. Specifically, the discount rate would need to increase by 0.98% (holding all the other assumptions constant) for the estimated recoverable amount to be equal to the carrying amount.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(d)

Impairment assessment on CGU, Continued

On the other hand, as a result of impairment assessment for Display (Large OLED) CGU and Display (AD PO) CGU, the recoverable amount exceeded its carrying amount by 1,463,528 million and 2,734,516 million, respectively.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investment Property

(a)

Changes in investment properties for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Beginning balance		32,995			28,269
Transfer from property, plant and equipment		—			9,928
Depreciation		(5,084	)		(4,962	)
Others		—			(240	)

Ending balance		27,911			32,995

(b)

For the year ended December 31, 2024, rental income from investment property is 8,891 million (2023: 5,478 million) and rental cost is 5,468 million (2023: 5,429 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities

(a)

Details of financial liabilities as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024		December 31, 2023
Current
Short-term borrowings		969,595		1,875,635
Current portion of long-term borrowings		4,907,390		2,934,693
Current portion of bonds		611,882		369,716
Derivatives (*1)		3,762		26,193
Fair value hedging derivatives (*2)		—		7,392
Lease liabilities		34,821		48,666

Total		6,527,450		5,262,295

Non-current
Long-term borrowings		7,535,290		10,230,658
Bonds		525,957		1,118,427
Derivatives (*1)		7,006		37,333
Fair value hedging derivatives (*2)		—		28,660
Lease liabilities		23,154		24,698

Total		8,091,407		11,439,776

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest rate swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

(b)

Details of short-term borrowings as of December 31, 2024 and 2023 are as follows:

(In millions of won)

Lender

Description

Annual interest rate as of
December 31, 2024 (%)

December 31,
2024

December 31,
2023

Standard Chartered Bank

Korea Limited and others

Working capital and others

3.50 ~ 6.41

969,595

1,875,635

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities, Continued

(c)

Details of Korean won denominated long-term borrowings as of December 31, 2024 and 2023 are as follows:


(In millions of won)
Lender	Description		Latest Maturity date		Annual interest rate as of December 31, 2024 (%)		December 31, 2024			December 31, 2023
LG Electronics Inc.		Operating capital		March 2026		6.06		1,000,000			1,000,000
Korea Development Bank and others		Facility capital and others		March 2025 ~ March 2030		2.41 ~ 5.74		3,668,538			3,490,967
Less: current portion of long-term borrowings								(1,861,000	)		(776,000	)

Total								2,807,538			3,714,967

(d)

Details of foreign currency denominated long-term borrowings as of December 31, 2024 and 2023 are as follows:

(In millions of won, USD and CNY)

Lender

Description

Latest
Maturity date

Annual interest rate
as of
December 31, 2024 (%)

December 31,
2024

December 31,
2023

KEB Hana Bank and others

Facility
capital and
others

January 2025
~ July 2029

2.13 ~ 7.06

7,774,142

8,674,384

Foreign currency equivalent of foreign currency borrowings

USD 2,528

USD 3,222

CNY 20,164

CNY 24,991

Less: current portion of long-term borrowings

(3,046,390

)

(2,158,693

)

Total

4,727,752

6,515,691

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities, Continued

(e)

Details of bonds issued and outstanding as of December 31, 2024 and 2023 are as follows:


(In millions of won and USD)
	Maturity	Annual interest rate as of December 31, 2024 (%)		December 31, 2024			December 31, 2023
Korean won denominated bonds at amortized cost (*1)
Publicly issued bonds	February 2025 ~ February 2027		2.79~3.66		655,000			1,025,000
Privately issued bonds	January 2025 ~ January 2026		7.20~7.25		337,000			337,000
Less: discount on bonds					(705	)		(2,120	)
Less: current portion					(611,882	)		(369,716	)

Subtotal					379,413			990,164

Foreign currency denominated bonds at amortized cost (*2)
Privately issued bonds	April 2026		6.52		147,000			128,940
Foreign currency equivalent of foreign currency denominated bonds					USD 100			USD 100
Less: discount on bonds					(456	)		(677	)

Less: foreign currency equivalent of discount on bonds of foreign currency denominated bonds					USD (0	)		USD (1	)

Subtotal					146,544			128,263

Total					525,957			1,118,427

(*1)	Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2)	Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits

(i) Defined benefit plans

The Parent Company and certain subsidiaries’ defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Parent Company or certain subsidiaries.

The defined benefit plans expose the Group to actuarial risks, such as the risk associated with expected periods of service, interest rate risk, market (investment) risk, and others.

(a)

Details of net defined benefit liabilities (defined benefit assets) recognized as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024			December 31, 2023
Present value of defined benefit obligations		1,444,252			1,491,146
Fair value of plan assets		(1,603,911	)		(1,897,025	)

Total		(159,659)			(405,879	)

Defined benefit liabilities, net		1,093			1,559
Defined benefit assets, net		(160,752	)		(407,438	)

(b)

Changes in the present value of the defined benefit obligations for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Defined benefit obligations at January 1		1,491,146			1,602,697
Current service cost		148,868			173,879
Interest cost		67,426			83,793
Remeasurements (before tax)		142,422			(65,505	)
Benefit payments		(399,549	)		(287,100	)
Net transfers from (to) related parties		(5,975	)		(16,551	)
Others		(86	)		(67	)

Defined benefit obligations at December 31		1,444,252			1,491,146

Weighted average remaining maturity of defined benefit obligations as of December 31, 2024 is 9.98 years (December 31, 2023 : 12.20 years).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits, Continued

(c)

Changes in fair value of plan assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Fair value of plan assets at January 1		1,897,025			2,048,687
Interest income		86,280			107,735
Remeasurements (before tax)		(11,781	)		(870	)
Contributions by employer directly to plan assets		1,499			2,219
Benefit payments		(369,112	)		(260,528	)
Net transfers from (to) related parties		—			(218	)

Fair value of plan assets at December 31		1,603,911			1,897,025

The Group is considering the amount of recent contributions and the size of plan assets when estimating the contributions expected to be paid in the fiscal year commencing after the end of the reporting period.

(d)

Details of plan assets as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024		December 31, 2023
Time deposits in banks		1,603,911		1,897,025

As of December 31, 2024, the Group maintains the plan assets primarily with Shinhan Bank , KEB Hana Bank and others.

(e)

Details of expenses related to defined benefit plans recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Current service cost		148,868			173,879
Net interest cost		(18,854	)		(23,942	)

Total(*)		130,014			149,937

(*)

The total cost related to the defined benefit plans includes capitalized amounts of 9,885 million (2023: 15,085 million).

Details of expenses are recognized in the consolidated statements of comprehensive income (loss) as follows:


(In millions of won)	2024		2023
Cost of sales		89,052		99,141
Selling expenses		6,201		7,138
Administrative expenses		14,271		16,865
Research and development expenses		10,605		11,708

Total(*)		120,129		134,852

(*)

The total cost recognized in the comprehensive income statement related to defined benefit plans excludes capitalized amounts of 9,885 million (2023: 15,085 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits, Continued

(f)

Details of remeasurements of the net defined benefit liabilities (assets) included in other comprehensive income (loss) for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Balance at January 1		47,087			(2,900	)
Remeasurements
Actuarial profit or loss arising from:
Experience adjustment		(21,525	)		66,461
Demographic assumptions		7,487			(85	)
Financial assumptions		(128,384	)		(871	)
Return on plan assets		(11,781	)		(870	)
Group’s share of associates regarding remeasurements		(85	)		170

Subtotal		(154,288	)		64,805

Income tax		22,368			(14,818	)

Balance at December 31		(84,833	)		47,087

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits, Continued

(g)

Details of principal actuarial assumptions as of December 31, 2024 and 2023 (expressed as weighted averages) are as follows:


	December 31, 2024			December 31, 2023
Expected rate of salary increase		4.0	%		4.0	%
Discount rate for defined benefit obligations		3.9	%		4.6	%

(h)

Reasonably possible changes to respective relevant actuarial assumptions would have affected the defined benefit obligations by the following amounts as of December 31, 2024:


(In millions of won)	Defined benefit obligations
	1% increase			1% decrease
Discount rate for defined benefit obligations		(127,037	)		146,746
Expected rate of salary increase		151,241			(132,836	)

(ii) Defined contribution plans

The amount recognized as an expense in relation to the defined contribution plan in 2024 is 19,057 million (2023: 8,534 million).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

14.	Provisions

Changes in provisions for the years ended December 31, 2024 and 2023 are as follows:

(i) 2024


(In millions of won)
	Litigation		Warranties (*)			Others		Total
Beginning balance		1,806		173,795			5,880		181,481
Additions		5,673		113,689			117		119,479
Usage		—		(134,801	)		—		(134,801	)

Ending balance		7,479		152,683			5,997		166,159

Current		7,479		91,775			5,997		105,251
Non-current		—		60,908			—		60,908

(*)	The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

(ii) 2023


(In millions of won)
	Litigation		Warranties (*)			Others			Total
Beginning balance		1,680		249,368			8,432			259,480
Additions (reversal)		126		101,846			(2,552	)		99,420
Usage		—		(177,419	)		—			(177,419	)

Ending balance		1,806		173,795			5,880			181,481

Current		1,806		109,990			5,880			117,676
Non-current		—		63,805			—			63,805

(*)	The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments

(a)

Legal Proceedings

Anti-trust litigations

The Group and other LCD panel manufacturers have been sued by individual claimants on allegations of violating EU competition laws. While the Group continues its vigorous defense of this pending proceeding. As of December 31, 2024, the Group cannot predict the final outcomes of the lawsuits that have been filed.

Others

The Group is involved in various lawsuits and disputes in addition to the pending proceeding described above. The Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.

(b)

Commitments

Factoring and securitization of accounts receivable

The Parent Company has discount agreements with Korea Development Bank and other banks for accounts receivable related to export sales transactions with its subsidiary, up to USD 1,000 million ( 1,470,000 million). As of December 31, 2024, there is no discounted accounts receivable that have not yet matured in connection with these agreements. In relation to the above agreements, the financial institutions have the recourse for accounts receivable that are past due.

The Group has assignment agreements with Standard Chartered Bank and other banks for accounts receivable related to domestic and export sales transactions, up to 4,483,500 million. As of December 31, 2024, the amount of the accounts receivable assigned that have not matured in connection with these agreements is 1,314,003 million. In relation to the above agreements, the financial institutions do not have the right of recourse for accounts receivable that are past due.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments, Continued

Loan commitment

As of December 31, 2024, the Group has entered into agreements with Hana Bank and other banks for credit lines and opening of letter of credits up to 3,544,726 million.

Payment guarantees

The Parent Company received payment guarantees of USD 900 million (1,323,000 million) from KB Kookmin Bank and other banks for advances received related to the long-term supply agreements.

The Group is provided with the guarantees for the borrowings amounting to USD 1,025 million ( 1,506,750 million) by the Export-Import Bank of Korea and Korea Trade Insurance Corporation.

The Group has entered into guarantee agreements with Seoul Guarantee Insurance Co., Ltd., China Construction Bank Corporation and other banks up to 2,021 million, CNY 913 million (183,760 million), JPY 900 million (8,428 million), VND 76,157 million (4,394 million), and USD 0.2 million (269 million) for the payment of consumption tax, import value-added tax, customs duties, and electricity charges.

Patent and License agreements

As of December 31, 2024, the Group has patent license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent license agreements with Universal Display Corporation and others in relation to its OLED business. Also, as of December 31, 2024, the Group has a trademark license agreement with LG Corp. and other license agreements with other companies for patents, trademarks and other intellectual property rights.

Long-term Supply Agreement

As of December 31, 2024, in connection with long-term supply agreements with customers, the Parent Company recognized advances received amounting to USD 750 million (1,102,500 million). The advances received will be used to offset against accounts receivable arising from future product sales after a certain period of time from the date of receipt. In relation to this, the Parent Company received payment guarantees of USD 900 million (1,323,000 million) from KB Kookmin Bank and other banks (see note 15(b) payment guarantees).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments, Continued

Collateral

Details of collateral provided by the Group are as follows:


(In millions of won and CNY)

Collateral	Carrying amount		Maximum bond amount		Secured creditor	Collateral borrowings amount
Property, plant and equipment and others		437,583		1,200,000	LG Electronics Inc.		1,000,000
Property, plant and equipment and others		67,974		326,400	Korea Development Bank and others		136,000
Property, plant and equipment and others (*)		237,283		780,000	Korea Development Bank and others		650,000
Property, plant and equipment and others		746,738		—	China Construction Bank Corporation and others		CNY 6,000

(*)	The carrying amount of collateral amounting to 237,283 million includes the collateral of 67,974 million for collateralized borrowings of 136,000 million from Korea Development Bank and other banks.

Commitments for asset acquisition

The amount committed to acquire property, plant, equipment and intangible assets not recognized on the financial statements as of December 31, 2024 is 465,422 million.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

16.	Share Capital, Share Premium and Reserves

(a)

Share capital and Share Premium

The total number of shares to be issued by the Parent Company is 500,000,000 shares, the number of shares issued is 500,000,000 shares (December 31, 2023: 357,815,700 shares), and the par value per share is 5,000.

The Parent Company conducted a paid-in capital increase as below based on the resolution of the board of directors on December 18, 2023, and the newly issued shares were listed on the Korea Exchange (KRX) on March 26, 2024.

With the new shares of common stock, the share capital increased by 710,921 million to 2,500,000 million.


Classification		Description
Purpose		Funding for capital and operating expenditures and repayment of debts
Type of shares issued		Common stock
Number of shares issued		142,184,300 shares
The amount per shares		9,090

Capital surplus as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024			December 31, 2023
Share premium		2,821,006			2,251,113
Other capital surplus		(47,419	)		—

Total		2,773,587			2,251,113

(b)

Reserves

Reserves consist mainly of the following:

Translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of overseas subsidiaries and others.

Other comprehensive income (loss) from associates

The other comprehensive income (loss) from associates comprises the amount related to change in equity of investments in equity accounted investees.

Other comprehensive income (loss) held for sale

The other comprehensive income (loss) held for sale comprises the translation reserve from the disposal groups held for sale.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

16.	Share Capital, Share Premium and Reserves, Continued

Reserves as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024			December 31, 2023
Foreign currency translation differences		1,025,319			548,792
Other comprehensive loss from associates		(29,496	)		(32,816	)
Other comprehensive income held for sale		291,363			—

Total		1,287,186			515,976

The movement in reserves for the years ended December 31, 2024 and 2023 are as follows:


	Foreign currency translation differences		Other comprehensive income (loss) from associates (excluding remeasurements)			Other comprehensive income (loss) held for sale		Total
January 1, 2023		509,620		(29,992	)		—		479,628
Change in reserves		39,172		(2,824	)		—		36,348

December 31, 2023		548,792		(32,816	)		—		515,976

January 1, 2024		548,792		(32,816	)		—		515,976
Change in reserves		476,527		3,320			291,363		771,210

December 31, 2024		1,025,319		(29,496	)		291,363		1,287,186

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.

Revenue

Details of revenue for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Sales of goods		26,455,920		21,254,395
Royalties(*)		60,638		16,256
Others(*)		98,789		60,168

Total		26,615,347		21,330,819

(*)	It includes license revenue and rental income recognized over the period.

For the year ended December 31, 2024, the revenue recognized by satisfying performance obligation for the amount received from the customer in prior reporting periods is 589,055 million.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

18.	Information about geographical areas and products

Details of information of geographical areas and products for the years ended December 31, 2024, and 2023 are as follows:

(a)

Revenue by geography (Customer based)


(In millions of won)
Geography	2024		2023
Domestic		1,007,200		633,529
Foreign
China		18,150,480		14,704,357
Asia (excluding China)		3,228,369		2,397,980
North America		2,282,754		2,079,628
Europe		1,946,544		1,515,325

Subtotal		25,608,147		20,697,290

Total		26,615,347		21,330,819

Revenue from Customer A and Customer B amount to 14,281,844 million and 3,767,278 million, respectively, for the year ended December 31, 2024 (the year ended December 31, 2023: 11,119,769 million and 3,371,229 million, respectively). The aggregated revenues from the Group’s top ten customers accounted for 89% of revenue for the year ended December 31, 2024 (the year ended December 31, 2023: 87%).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

18.	Information about geographical areas and products, Continued

(b)

Non-current assets by geography


(In millions of won)
	December 31, 2024						December 31, 2023
Geography	Property, plant and equipment		Intangible assets		Investment Property		Property, plant and equipment		Intangible assets		Investment Property
Domestic		11,913,201		1,485,876		27,911		13,583,136		1,683,116		32,995
Foreign
China		2,099,653		16,792		—		3,358,395		32,009		—
Vietnam		3,181,152		41,574		—		3,244,729		31,472		—
Others		8,867		14,165		—		14,072		27,358		—

Subtotal		5,289,672		72,531		—		6,617,196		90,839		—

Total		17,202,873		1,558,407		27,911		20,200,332		1,773,955		32,995

(c)

Revenue by type of products and services


(In millions of won)
	2024		2023
TV		5,972,637		4,331,474
IT		9,419,615		7,853,034
Mobile and others(*)		8,942,349		7,146,998
AUTO		2,280,746		1,999,313

Total(*)		26,615,347		21,330,819

(*)	This includes royalties and other revenue.

For the year ended December 31, 2024, the revenue from OLED products comprised 55% (for the year ended December 31, 2023 : 48%) of the total revenue.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

19.	The Nature of Expenses

The classification of expenses by nature for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Changes in inventories		(143,513	)		345,190
Purchases of raw materials		12,973,989			10,810,985
Depreciation and amortization		5,125,637			4,213,742
Outsourcing		1,159,520			922,565
Labor		3,714,001			3,439,608
Supplies and others		987,265			938,568
Utility		1,397,669			1,193,025
Fees and commissions		740,863			704,763
Shipping		172,081			124,770
Advertising		67,092			76,404
Warranty		113,689			101,846
Travel		53,244			66,201
Taxes and dues		135,982			129,784
Others		678,424			773,532

Total(*)		27,175,943			23,840,983

(*)	Total expenses consist of cost of sales, selling, administrative, research and development expenses.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

20.	Selling and Administrative Expenses

Details of selling and administrative expenses for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Salaries		579,784		372,966
Expenses related to defined benefit plans		22,596		24,822
Other employee benefits		84,007		86,692
Shipping		119,325		91,960
Fees and commissions		246,020		253,495
Depreciation and amortization		266,159		264,982
Taxes and dues		63,382		65,528
Advertising		67,092		76,404
Warranty		113,689		101,846
Insurance		14,216		13,610
Travel		13,122		18,421
Training		9,306		9,775
Others		89,611		95,186

Total		1,688,309		1,475,687

21.	Other Non-operating Income and Other Non-operating Expenses

(a)

Details of other non-operating income for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Foreign currency gain		1,972,046		1,398,181
Gain on disposal of property, plant and equipment		51,792		34,961
Gain on disposal of intangible assets		25		1,989
Reversal of impairment loss on property, plant and equipment		4,314		7
Rental income		1,755		2,271
Others		70,511		34,849

Total		2,100,443		1,472,258

(b)

Details of other non-operating expenses for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Foreign currency loss		2,479,014		1,516,528
Loss on disposal of property, plant and equipment		76,771		102,453
Impairment loss on property, plant and equipment		98,525		60,072
Impairment loss on intangible assets		72,490		54,833
Others		71,181		52,348

Total		2,797,981		1,786,234

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

22.	Finance Income and Finance Costs

Details of finance income and costs recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Finance income
Interest income		87,692		134,664
Foreign currency gain		375,557		560,633
Gain on transaction of derivatives		274,173		178,610
Gain on valuation of derivatives		145,078		239,973
Gain on valuation of financial assets at fair value through profit or loss		532		5,288
Others		62		3,126

Total		883,094		1,122,294

Finance costs
Interest expense		909,640		723,429
Foreign currency loss		861,409		512,456
Loss on sale of trade accounts and notes receivable		26,178		48,600
Loss on valuation of derivatives		5,771		316,467
Loss on valuation of financial assets at fair value through profit or loss		9,122		18,562
Others		9,792		15,020

Total		1,821,912		1,634,534

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

23.	Income Tax Benefit (Expense)

(a)

Details of income tax benefit (expense) for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Current tax benefit (expense)
Current year		(191,865	)		(260,556	)
Adjustment for prior years		(32,276	)		67,985

Subtotal		(224,141	)		(192,571	)

Deferred tax benefit
Changes in temporary differences		6,381			955,283

Income tax benefit (expense)		(217,760	)		762,712

(b)

Details of income tax benefit (expense) recognized in equity for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024									2023
	Before tax			Income tax effect			Net of tax			Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)		(154,203	)		22,368			(131,835	)		64,635			(14,818	)		49,817
Foreign currency translation differences		997,729			(71,092	)		926,637			43,572			(20,429	)		23,143
Acquisition of non-controlling shareholders’ interests in subsidiaries		(61,512	)		14,093			(47,419	)		—			—			—
Change in equity of equity method investee		3,235			—			3,235			(2,679	)		25			(2,654	)

Total		785,249			(34,631	)		750,618			105,528			(35,222	)		70,306

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

23.	Income Tax Benefit (Expense), Continued

(c)

Reconciliation of the effective tax rate for the years ended December 31, 2024 and 2023 is as follows:


(In millions of won)	2024			2023
Loss for the year		(2,409,300	)		(2,576,729	)
Income tax benefit (expense)		(217,760	)		762,712

Loss before income tax		(2,191,540	)		(3,339,441	)

Income tax benefit using the statutory tax rate of each country		527,019			789,941
Income not subject to tax (Expenses not deductible for tax purposes)		2,704			(19,759	)
Tax credit		22,854			207,745
Change in unrecognized deferred tax assets (*1)		(703,714	)		(156,783	)
Adjustment for prior years		(13,807	)		10,726
Effect on change in tax rate		(54,821	)		(60,134	)
Others		2,005			(9,024	)

Total		(217,760	)		762,712

Effective tax rate		(*2)			(*2)

(*1)

The effect of changes in deferred tax assets related to tax loss carryforwards and tax credit carryforwards that are not realizable based on the estimates of future taxable profit.

(*2)

Actual effective tax rate is not calculated due to loss before income tax for the years ended December 31, 2024 and 2023.

(d)

Global Minimum Tax

Under Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Group has assessed its impact of the Pillar Two legislation on its financial statements. As a result of the assessment, the Group has no current tax expenses related to Pillar Two legislation for the year ended December 31, 2024.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

24.	Deferred Tax Assets and Liabilities

(a)

Details of the recovery and settlement timings for deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Deferred tax assets
Deferred tax asset to be recovered after more than 12 months		3,694,831		3,879,071
Deferred tax asset to be recovered within 12 months		493,850		370,009

Total deferred tax assets		4,188,681		4,249,080

Deferred tax liabilities
Deferred tax liability to be settled after more than 12 months		496,851		588,669
Deferred tax liability to be settled within 12 months		187,653		99,619

Total deferred tax liabilities		684,504		688,288

Deferred tax assets after offsetting		3,504,177		3,560,792

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

24.	Deferred Tax Assets and Liabilities, Continued

(b)

Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	January 1, 2023			Profit or loss for 2023			Other comprehensive loss for 2023			December 31, 2023			Profit or loss for 2024			Other comprehensive income (loss) and others for 2024			Classified as held for sale			December 31, 2024
Other accounts Receivable		(2,009	)		1,948			—			(61	)		(4,409	)		—			—			(4,470	)
Inventories		62,014			(10,286	)		—			51,728			12,897			—			(1,498	)		63,127
Defined benefits assets and others		(95,850	)		20,915			(14,818	)		(89,753	)		53,721			22,368			—			(13,664	)
Subsidiaries and associates		(252,375	)		183,130			(20,404	)		(89,649	)		(3,731	)		(56,999	)		—			(150,379	)
Accrued expenses		111,293			(13,426	)		—			97,867			8,902			—			(176	)		106,593
Tangible and Intangible Assets		708,093			(130,785	)		—			577,308			(58,721	)		—			60,747			579,334
Provisions		57,210			(17,624	)		—			39,586			(4,666	)		—			—			34,920
Other temporary differences		86,252			(27,521	)		—			58,731			(8,413	)		—			(15,100	)		35,218
Tax loss carryforwards		1,795,132			971,688			—			2,766,820			14,365			—			(72,338	)		2,708,847
Tax credit carryforwards		170,971			(22,756	)		—			148,215			(3,564	)		—			—			144,651

Deferred tax assets (liabilities)		2,640,731			955,283			(35,222	)		3,560,792			6,381			(34,631	)		(28,365	)		3,504,177

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

24.	Deferred Tax Assets and Liabilities, Continued

(c)

Details of deductible (taxable) temporary differences, tax credit carryforwards and tax credit carryforwards unrecognized as deferred tax assets (liabilities) as of December 31, 2024, are as follows:


(In millions of won)
	Amount			Reason
Investments with its subsidiary		(1,125,864	)	Unlikely to reverse (dispose of) in the foreseeable future
Tax credit carryforwards (*1)		949,968		Uncertainty of future taxable profit
Tax loss carryforwards (*2)		2,946,346		Uncertainty of future taxable profit

(*1)	Unrecognized tax credit carryforwards due to the low probability of realization in the future as of December 31, 2024, will be expired from 2025.

(*2)	Unrecognized tax loss carryforwards due to the low probability of realization in the future as of December 31, 2024, will be expired from 2029.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Loss per Share

(a)

Basic loss per share for the years ended December 31, 2024 and 2023 are as follows:


(In won and No. of shares)	2024			2023
Loss attributable to owners of the Controlling Company for the year		(2,562,606,429,762	)		(2,733,741,837,803	)
Weighted-average number of common stocks outstanding		471,252,355			380,884,673

Basic loss per share		(5,438	)		(7,177	)

Due to paid-in capital increase for the year ended December 31, 2024, the number of outstanding shares has increased. The weighted-average number of common shares outstanding for previous period has been adjusted considering a bonus element in a rights issue to existing shareholders for the year ended December 31, 2024.

(b)

Diluted loss per share is not different from basic loss per share as there are no dilution effects of potential common stocks.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management

The Group is exposed to credit risk, liquidity risk and market risk. The Group identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below an acceptable level.

(a)

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, which will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i)

Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Parent Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, CNY, JPY, etc.

Interest on borrowings is accrued in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group, primarily KRW, USD, and CNY.

The Group adopts policies to ensure that its net exposure is kept to a manageable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. In respect of monetary assets and liabilities denominated in foreign currencies, the Group manages currency risk through continuously managing the position of foreign currencies, measuring the currency risk and, if necessary, using derivatives such as currency forwards, currency swap and others.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

Exposure to currency risk

The Group’s exposure to foreign currency risk for major foreign currencies based on notional amounts as of December 31, 2024 and 2023 is as follows:


(In millions)	Net exposure
	December 31, 2024			December 31, 2023
USD		(215	)		(859	)
JPY		(13,932	)		(23,398	)
CNY		(26,923	)		(19,043	)
VND		(1,485,175	)		(1,796,335	)

Net exposure is the difference between foreign currency assets and liabilities and it includes derivatives assets and liabilities from cross currency interest rate swap contracts and forward exchange contracts.

Cross currency interest rate swap contracts, USD 500 million (2023: USD 500 million) and CNY 726 million (2023: CNY 345 million) were entered into to manage currency risk with respect to foreign currency denominated borrowings and USD 980 million (2023: USD 1,430 million) were entered into to manage currency risk and interest rate risk with respect to foreign currency denominated borrowings and bonds.

Forward exchange contracts, USD 750 million (2023: USD 1,200 million) were entered into to manage currency risk with respect to advances received in foreign currency.

Average exchange rates applied for the years periods ended December 31, 2024 and 2023 and the exchange rates as of December 31 and 2023 are as follows:


(In won)	Average rate				Reporting date spot rate
	2024		2023		December 31, 2024		December 31, 2023
USD		1,363.09		1,306.12		1,470.00		1,289.40
JPY		9.01		9.32		9.36		9.13
CNY		189.13		184.28		201.27		180.84
VND		0.0544		0.0548		0.0577		0.0532

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

ii)

Sensitivity analysis

A weaker won, as indicated below, against the following currencies which comprise the Group’s assets or liabilities denominated in a foreign currency as of December 31, 2024 and 2023 would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considers to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:


(In millions of won)	December 31, 2024						December 31, 2023
	Equity			Profit or loss			Equity			Profit or loss
USD (5 percent weakening)		(7,533	)		(27,651	)		(68,615	)		44,361
JPY (5 percent weakening)		(5,001	)		(5,123	)		(8,160	)		(8,480	)
CNY (5 percent weakening)		(270,943	)		(1	)		(172,198	)		(2	)
VND (5 percent weakening)		(3,303	)		(3,303	)		(3,683	)		(3,683	)

A stronger won against the above currencies as of December 31, 2024 and 2023 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

iii)

Fair value hedging derivatives

In relation to advances received that are denominated in foreign currency, the Group uses derivative instruments to hedge change of fair value due to foreign currency exchange rate changes.

Hedging
instrument

Contractor

Contract amount

(In millions)

Contract

exchange rate

Maturity date

Change in value

(In millions of won)

Ineffective portion of
risk hedging

(In millions of won)

Forward

Standard Chartered Bank Korea Limited

and others

USD 750

1,289.11 ~ 1,310,08

2025.01 ~ 2026.01

155,149

19,699

(ii)

Interest rate risk

Interest rate risk arises principally from the Group’s variable interest-bearing bonds and borrowings. The Group establishes and applies its policy to reduce uncertainty arising from fluctuations in interest rates and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and establishing plan for countermeasures. Meanwhile, the Group entered into cross currency interest rate swap contracts amounting to USD 980 million (1,440,600 million) and interest rate swap contracts amounting to 915,000 million in notional amount to hedge interest rate risk with respect to variable interest bearing borrowings.

Profile

The interest rate profile of the Group’s interest-bearing financial instruments as of December 31, 2024 and 2023 is as follows:


(In millions of won)	December 31, 2024			December 31, 2023
Fixed rate instruments
Financial assets		2,023,710			3,163,490
Financial liabilities		(4,722,962	)		(6,333,238	)

Total		(2,699,252)			(3,169,748	)

Variable rate instruments
Financial liabilities		(9,827,152	)		(10,195,891	)

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

ii)

Equity and profit or loss sensitivity analysis for variable rate instruments

As of December 31, 2024 and 2023, a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for the respective following 12 months periods. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.


(In millions of won)	Equity					Profit or loss
	1%p increase			1%p decrease		1%p increase			1%p decrease
December 31, 2024
Variable rate instruments (*)		(75,758	)		75,758		(75,758	)		75,758
December 31, 2023
Variable rate instruments (*)		(78,590	)		78,590		(78,590	)		78,590

(*)

Included financial instruments for which interest rate swap contracts, not designated as hedging instruments, were entered into.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(b)

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers.

The Group’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each customer. However, management believes that the default risk of the country in which each customer operates, does not have a significant influence on credit risk since the majority of the customers are global electronic appliance manufacturers operating in global markets.

The Group establishes credit limits for each customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.

In relation to the impairment of financial assets subsequent to initial recognition, the Group recognizes the changes in expected credit loss (“ECL”) in profit or loss at each reporting date.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of December 31, 2024 and 2023 is as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Financial assets carried at amortized cost
Cash equivalents		2,021,640		2,257,519
Deposits in banks		611		905,982
Trade accounts and notes receivable, net(*)		3,624,477		3,218,093
Non-trade receivables		227,477		112,739
Accrued income		22,552		14,246
Deposits		16,747		18,378
Loans		37,143		59,884

Subtotal		5,950,647		6,586,841

Other financial assets
Lease receivables		10,063		4,130

Subtotal		10,063		4,130

Financial assets at fair value through profit or loss
Convertible securities		1,470		3,127
Derivatives		256,251		169,703

Subtotal		257,721		172,830

Financial assets effective for fair value hedging
Derivatives		119,098		—

Total		6,337,529		6,763,801

(*) As of December 31, 2024, it includes financial assets amounting to 1,123,869 million held under the business model to achieve the purpose through the receipt of contractual cash flows and the sale of financial assets are included.

Trade accounts and notes receivable are insured in order for the Group to manage credit risk if they do not meet the Group’s internal credit ratings. Uninsured trade accounts and notes receivable are managed by continuous monitoring of internal credit rating standards established by the Group and seeking insurance coverage, if necessary.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(c)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Group’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Group has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. In addition, the Group maintains a line of credit with various banks.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of December 31, 2024 and 2023.

(i)

As of December 31, 2024


(In millions of won)			Contractual cash flows in
	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings		13,412,275		14,453,995			3,730,807			2,609,727			3,941,215			4,146,933			25,313
Bonds		1,137,839		1,185,892			631,539			11,638			416,573			126,142			—
Trade accounts and notes payable(*)		4,156,149		4,156,149			3,884,788			271,361			—			—			—
Other accounts payable(*)		1,720,670		1,723,867			1,404,896			318,971			—			—			—
Long-term other accounts payable		279,774		323,400			—			—			69,090			192,570			61,740
Security deposits received		160,713		189,214			—			808			6,841			181,565			—
Lease liabilities		57,975		60,653			23,948			12,681			13,889			9,423			712
Derivative financial liabilities
Derivatives		10,768		11,184			930			3,447			4,495			2,312			—
Cash outflow		—		75,016			21,402			20,467			22,342			10,805			—
Cash inflow		—		(63,832	)		(20,472	)		(17,020	)		(17,847	)		(8,493	)		—

Total		20,936,163		22,104,354			9,676,908			3,228,633			4,452,103			4,658,945			87,765

(*)

As of December 31, 2024, it includes 1,187,450 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Group presented the payable to credit card companies as trade account notes payables and other accounts payable and disclosed related cash flows as operating and investing activities since the Group is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(ii)

As of December 31, 2023


(In millions of won)			Contractual cash flows in
	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings		15,040,986		16,309,036			3,534,173			1,900,982			6,231,118			4,397,095			245,668
Bonds		1,488,143		1,597,741			111,169			319,011			642,996			524,565			—
Trade accounts and notes payable(*)		4,175,064		4,175,064			3,969,497			205,567			—			—			—
Other accounts payable(*)		2,918,903		2,921,719			2,688,979			232,740			—			—			—
Long-term other accounts payable		357,907		413,255			—			—			129,587			175,358			108,310
Security deposits received		153,370		190,329			3,120			4,597			1,047			181,565			—
Lease liabilities		73,364		77,246			29,980			21,335			11,848			11,461			2,622
Derivative financial liabilities
Derivatives		63,526		45,705			18,781			3,988			12,474			10,462			—
Cash outflow		—		1,385,858			657,325			47,527			510,676			170,330			—
Cash inflow		—		(1,340,153	)		(638,544	)		(43,539	)		(498,202	)		(159,868	)		—
Fair value hedging derivatives		36,052		36,052			1,514			5,878			20,282			8,378			—

Total		24,307,315		25,766,147			10,357,213			2,694,098			7,049,352			5,308,884			356,600

(*)

As of December 31, 2023, it includes 1,092,180 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Group presented the payable to credit card companies as other accounts payable and disclosed related cash flows as operating and investing activities since the Group is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(d)

Capital management

The Group is also responsible for complying with certain financial ratios as part of capital maintenance conditions imposed externally. To fulfill this responsibility, the Group regularly monitors these financial ratios and takes proactive measures when necessary.


(In millions of won)
	December 31, 2024			December 31, 2023
Total liabilities		24,786,759			26,988,754
Total equity		8,072,807			8,770,544
Cash and deposits in banks (*1)		2,022,240			3,163,493
Borrowings (including bonds)		14,550,114			16,529,129
Total liabilities to equity ratio		307	%		308	%
Net borrowings to equity ratio (*2)		155	%		152	%

(*1)

Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks.

(*2)

Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(e)

Determination of fair value

(i)

Measurement of fair value

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(ii)

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statements of financial position as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024					December 31, 2023
	Carrying amounts		Fair values			Carrying amounts		Fair values
Financial assets carried at amortized cost
Cash and cash equivalents		2,021,640		(	*1)		2,257,522		(	*1)
Deposits in banks		611		(	*1)		905,982		(	*1)
Trade accounts and notes receivable(*3)		3,624,477		(	*1)		3,218,093		(	*1)
Non-trade receivables		227,477		(	*1)		112,739		(	*1)
Accrued income		22,552		(	*1)		14,246		(	*1)
Deposits		16,747		(	*1)		18,378		(	*1)
Loans		37,143		(	*1)		59,884		(	*1)
Financial assets at fair value through profit or loss
Equity instruments		120,501		120,501			87,027		87,027
Convertible securities		1,470		1,470			3,127		3,127
Derivatives		256,251		256,251			169,703		169,703
Financial assets effective for fair value hedging
Derivatives		119,098		119,098			—		—
Other financial assets
Lease receivables		10,063		(	*1)		4,130		(	*1)
Financial liabilities carried at amortized cost
Borrowings		13,412,275		13,482,726			15,040,986		15,101,258
Bonds		1,137,839		1,142,725			1,488,143		1,479,725
Trade accounts and notes payable		4,156,149		(	*1)		4,175,064		(	*1)
Other accounts payable		2,000,444		(	*1)		3,276,810		(	*1)
Security deposits received		160,713		(	*1)		153,370		(	*1)
Financial liabilities at fair value through profit or loss
Derivatives		10,768		10,768			63,526		63,526
Financial liabilities effective for fair value hedging
Derivatives		—		—			36,052		36,052
Other financial liabilities
Lease liabilities		57,975		(	*2)		73,364		(	*2)

(*1)

Excluded from disclosures as the carrying amount approximates fair value.

(*2)

Excluded from the fair value disclosures in accordance with Korean IFRS 1107 ‘Financial Instruments: Disclosures’.

(*3)

As of December 31, 2024, it includes financial assets amounting to 1,123,869 million held under the business model to achieve the purpose through the receipt of contractual cash flows and the sale of financial assets are included.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(iii)

Fair values of financial assets and liabilities

Fair value hierarchy

Financial instruments carried at fair value are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques. The different levels have been defined as follows:

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

•

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

•

Level 3: inputs for the asset or liability that are not based on observable market data

ii)

Valuation techniques and inputs for Assets and Liabilities measured by the fair value hierarchy

Fair value hierarchy classifications of the financial instruments that are measured at fair value as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024						Total
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities		18,958		—		101,543		120,501
Convertible securities		—		—		1,470		1,470
Derivatives		—		256,251		—		256,251
Financial assets effective for fair value hedging
Derivatives		—		119,098		—		119,098
Financial liabilities at fair value through profit or loss
Derivatives		—		10,768		—		10,768

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued


(In millions of won)	December 31, 2023						Total
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities		—		—		87,027		87,027
Convertible securities		—		—		3,127		3,127
Derivatives		—		169,703		—		169,703
Financial liabilities at fair value through profit or loss
Derivatives		—		63,526		—		63,526
Financial liabilities effective for fair value hedging
Derivatives		—		36,052		—		36,052

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

The valuation techniques and inputs for assets and liabilities measured at fair value those are classified as Level 2 and Level 3 within the fair value hierarchy as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024				December 31, 2023				Valuation technique	Input
Classification	Level 2		Level 3		Level 2		Level 3
Financial assets at fair value through profit or loss
Equity securities		—		101,543		—		87,027	Net asset value method and Comparable company analysis	Price to book value ratio
Convertible securities		—		1,470		—		3,127	Blended discount model and binominal option pricing model	Discount rate, stock price and volatility
Derivatives		256,251		—		169,703		—	Discounted cash flow	Discount rate and Exchange rate
Financial assets effective for fair value hedging
Derivatives		119,098		—		—		—	Discounted cash flow	Discount rate and Exchange rate
Financial liabilities at fair value through profit or loss
Derivatives		10,768		—		63,526		—	Discounted cash flow	Discount rate and Exchange rate
Financial liabilities effective for fair value hedging
Derivatives		—		—		36,052		—	Discounted cash flow	Discount rate and Exchange rate

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

iii)

Financial instruments not measured at fair value but for which the fair value is disclosed

Fair value hierarchy classifications, valuation technique and inputs for fair value measurements of the financial instruments not measured at fair value but for which the fair value is disclosed as of December 31, 2024 and 2023 are as follows:

(In millions of won)

December 31, 2024

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

13,482,726

Discounted
cash flow

Discount
rate

Bonds

—

1,142,725

Discounted
cash flow

Discount
rate

(In millions of won)

December 31, 2023

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

15,101,258

Discounted
cash flow

Discount
rate

Bonds

—

1,479,725

Discounted
cash flow

Discount
rate

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

iv)

The interest rates applied for determination of the above fair value as of December 31, 2024 and 2023 are as follows


	December 31, 2024			December 31, 2023
Borrowings, bonds and others		3.70%~3.96	%		4.60%~5.02	%

There is no transfer between Level 1, Level 2 and Level 3 for the years ended December 31, 2024 and 2023, and the changes in financial assets classified as Level 3 of fair value measurements for the years ended December 31, 2024 and 2023 is as follows:


(In millions of won)
Classification	January 1, 2024		Acquisition		Disposal			Valuation			Changes in Foreign Exchange Rates		December 31, 2024
Equity securities		87,027		5,470		(128	)		(2,809	)		11,983		101,543
Convertible securities		3,127		—		(1,838	)		—			181		1,470


(In millions of won)
Classification	January 1, 2023		Acquisition		Disposal			Valuation			Changes in Foreign Exchange Rates			December 31, 2023
Equity securities		96,064		3,286		(414	)		(13,315	)		1,406			87,027
Convertible securities		1,797		1,329		—			41			(40	)		3,127

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(f)

Net gains and losses by category of financial instruments

The net gains and losses by category of financial instruments as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024
	Financial assets at amortized cost			Financial liabilities at amortized cost			Financial assets at FVTPL			Financial assets at FVOCI			Derivatives		Others			Total
Interest income		87,510			—			—			—			—		182			87,692
Interest expense		—			(906,766	)		—			—			—		(2,874	)		(909,640	)
Foreign currency differences		1,189,874			(2,238,150	)		—			—			190,906		—			(857,370	)
Bad debt expense		(689	)		—			—			—			—		—			(689	)
Gain or loss on disposal		(7,708	)		—			(109	)		(18,470	)		—		—			(26,287	)
Gain or loss on valuation		—			—			(8,590	)		—			—		—			(8,590	)
Gain or loss on repayment					(678	)		—			—			—		—			(678	)
Gain or loss on derivatives		—			—			—			—			413,480		—			413,480

Total		1,268,987			(3,145,594	)		(8,699	)		(18,470	)		604,386		(2,692	)		(1,302,082	)


(In millions of won)
	2023
	Financial assets at amortized cost			Financial liabilities at amortized cost			Financial assets at FVTPL			Financial assets at FVOCI			Derivatives			Others			Total
Interest income		134,388			—			—			—			—			276			134,664
Interest expense		—			(720,086	)		—			—			—			(3,343	)		(723,429	)
Foreign currency differences		108,546			(176,376	)		—			—			(36,052	)		—			(103,882	)
Reversal of bad debt expense		181			—			—			—			—			—			181
Gain or loss on disposal		(48,600	)		—			132			(329	)		—			—			(48,797	)
Gain or loss on valuation		—			—			(13,274	)		—			—			—			(13,274	)
Gain or loss on repayment		—			(167	)		—			—			—			—			(167	)
Gain or loss on derivatives		—			—			—			—			102,116			—			102,116

Total		194,515			(896,629	)		(13,142	)		(329	)		66,064			(3,067	)		(652,588	)

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

27.

Leases

(a)

Leases as lessee

The Group leases buildings, vehicles, machinery and equipment and others. Information about leases for which the Group is a lessee is presented below.

(i)

Right-of-use assets

Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property, plant and equipment(see Note 9(a)).

Changes in right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024
	Buildings and structures			Land			Machinery and equipment			Vehicles			Others			Total
Beginning balance		57,946			51,249			714			7,439			1,898			119,246
Acquisitions		24,008			1			2,658			7,044			154			33,865
Depreciation		(56,080	)		(3,063	)		(1,645	)		(6,879	)		(778	)		(68,445	)
Gain or loss on foreign currency translation		13,877			8,410			23			456			292			23,058

Classified as held for sale		(11,599	)		(5,585	)		—			(1,563	)		(44	)		(18,791	)

Ending balance		28,152			51,012			1,750			6,497			1,522			88,933


(In millions of won)
	2023
	Buildings and structures			Land			Machinery and equipment			Vehicles			Others			Total
Beginning balance		51,033			51,804			598			8,502			721			112,658
Acquisitions		65,133			—			881			6,698			1,899			74,611
Depreciation		(56,471	)		(2,846	)		(770	)		(7,482	)		(780	)		(68,349	)
Gain or loss on foreign currency translation		(1,749	)		2,291			5			(279	)		58			326

Ending balance		57,946			51,249			714			7,439			1,898			119,246

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

27.	Leases, Continued

(ii)

Amounts recognized in profit or loss not from right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024		2023
Interest on lease liabilities		(2,874)		(3,343	)
Income from sub-leasing right-of-use assets		182		276
Expenses relating to short-term leases		(274)		(241	)
Expenses relating to leases of low-value assets that are not short-term leases		(543)		(942	)

(iii)

Changes in lease liabilities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024		2023
Beginning balance		73,364		72,788
Additions and others		55,619		70,716
Interest expense		2,874		3,343
Repayment of liabilities		(73,882)		(73,483	)

Ending balance		57,975		73,364

(iv)

Total cash outflow from leases for the year ended December 31, 2024 amounted to 74,517 million (2023: 77,733).

(b)

Leases as lessor

(i)

Finance lease

For the years ended December 31, 2024 and 2023, the Group recognized interest income on lease receivables of 182 million and 276 million, respectively.

The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date.


(In millions of won)

	December 31, 2024			December 31, 2023
6 months or less		3,255			3,580
6-12 months		3,255			597
1-2 years		3,797			—

Total undiscounted lease receivable		10,307			4,177

Unearned finance income		(244	)		(47	)

Net Investment in the lease		10,063			4,130

(ii)

Operating lease

The Group leases out investment property and a portion of property, plant and equipment as operating leases (see Notes 9 and 11).

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash Flow Information

(a)

Details of cash flows generated from operations for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024			2023
Loss for the year		(2,409,300	)		(2,576,729	)

Adjustments for:
Income tax expense (benefit) (Note 23)		217,760			(762,712	)
Depreciation and amortization (Note 19)		5,125,637			4,213,742
Gain on foreign currency translation		(587,019	)		(313,378	)
Loss on foreign currency translation		979,061			241,701
Expenses related to defined benefit plans (Note 13)		130,014			149,937
Gain on disposal of property, plant and equipment		(51,792	)		(34,961	)
Loss on disposal of property, plant and equipment		76,771			102,453
Impairment loss on property, plant and equipment		98,525			60,072
Reversal of impairment loss on property, plant and equipment		(4,314	)		(7	)
Gain on disposal of intangible assets		(25	)		(1,989	)
Loss on disposal of intangible assets		388			55
Impairment loss on intangible assets		72,490			54,833
Reversal of impairment loss on intangible assets		(14	)		(242	)
Expense on increase of provision		119,141			101,846
Finance income		(511,068	)		(594,944	)
Finance costs		1,480,007			1,162,598
Equity in loss (income) of equity method accounted investees, net		(5,412	)		3,061
Others		(85,651	)		(7,030	)

Changes in:
Trade accounts and notes receivable		(395,513	)		(1,013,938	)
Other accounts receivable		(142,775	)		39,377
Inventories		(85,850	)		336,993
Other current assets		(14,479	)		92,983
Other non-current assets		2,537			1,151
Trade accounts and notes payable		(46,796	)		323,548
Other accounts payable		(529,621	)		(47,798	)
Accrued expenses		92,474			(47,088	)
Provisions		(134,684	)		(179,969	)
Advances received		(16,161	)		(19,461	)
Proceeds from settlement of derivatives		35,757			—
Other current liabilities		(4,050	)		(33,367	)
Defined benefit liabilities, net		(38,018	)		(45,123	)
Long-term advances received		—			1,580,222
Other non-current liabilities		5,436			33,493

Cash generated from operations		3,373,456			2,819,329

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash Flow Information, Continued

(b)

Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	January 1, 2024					Non-cash transactions
	January 1, 2024		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Classification of liabilities held for sale			Others		December 31, 2024
Short-term borrowings		1,875,635		(1,065,878	)		159,838		—		—			—		969,595
Long-term borrowings		13,165,351		(726,352	)		1,051,834		4,203		(1,060,592	)		8,236		12,442,680
Bonds		1,488,143		(370,000	)		18,004		1,692		—			—		1,137,839
Lease liabilities		73,364		(71,008	)		16,752		—		(6,772	)		45,639		57,975
Dividend payable		7,302		(136,519	)		268		—		—			135,339		6,390

Total		16,609,795		(2,369,757	)		1,246,696		5,895		(1,067,364	)		189,214		14,614,479


(In millions of won)
	January 1, 2023					Non-cash transactions
	January 1, 2023		Cash flows from financing activities			Gain or loss on foreign currency translation			Interest expense		Others		December 31, 2023
Short-term borrowings		2,578,552		(716,386	)		13,469			—		—		1,875,635
Long-term borrowings		10,964,112		2,139,554			50,174			3,271		8,240		13,165,351
Bonds		1,448,746		35,276			2,237			1,717		167		1,488,143
Lease liabilities		72,788		(73,483	)		(312	)		—		74,371		73,364
Dividend payable		—		(34,098	)		(44	)		—		41,444		7,302

Total		15,064,198		1,350,863			65,524			4,988		124,222		16,609,795

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash Flow Information, Continued

(c)

Details of significant non-cash transactions for the years ended December 31, 2024, and 2023 are as follows.


(In millions of won)

	2024		2023
Changes in other accounts payable arising from the purchase of property, plant and equipment		(630,267)		(348,046	)
Changes in other accounts payable arising from the purchase of intangible assets		(137,918)		(27,918	)
Recognition of right-of-use assets and lease liabilities		33,865		74,611
Reclassification of the current portion of borrowings/bonds		(6,559,088)		(3,441,686	)
Classification of assets held for sale		983,317		—
Classification of liabilities held for sale		1,656,841		—

29.	Related Parties and Others

(a)

Related parties

Details of related parties as of December 31, 2024 are as follows:


Classification		Description
Associates(*)		Paju Electric Glass Co., Ltd. and others
Entity that has significant influence over the Controlling Company		LG Electronics Inc.
Subsidiaries of the entity that has significant influence over the Controlling Company		Subsidiaries of LG Electronics Inc.

(*)	Details of associates are described in Note 8.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(b)

Details of major transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*2)
Associates
AVATEC Co., Ltd.(*1)		—		200		52,983		2,947
Paju Electric Glass Co., Ltd.		—		—		237,002		8,428
WooRee E&L Co., Ltd.(*1)		—		—		5,045		32
YAS Co., Ltd.(*1)		—		—		5,266		7,578
Material Science Co., Ltd.		—		—		3,579		1,512
Entity that has significant influence over the Controlling Company
LG Electronics Inc.		349,194		—		19,959		354,362
Subsidiaries of the entity that has significant influence over the Controlling Company
LG Electronics India Pvt. Ltd.		52,736		—		—		275
LG Electronics Vietnam Haiphong Co., Ltd.		306,727		—		—		5,945

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2024
					Purchase and Others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*2)
LG Electronics Nanjing New Technology Co., Ltd.		379,241		—		—		629
LG Electronics do Brasil Ltda.		32,165		—		—		248
LG Innotek Co., Ltd.		10,999		—		18,166		72,123
LG Electronics Mlawa Sp. z o.o.		977,531		—		—		1,105
LG Electronics Reynosa S.A. DE C.V.		973,432		—		—		746
LG Electronics Egypt S.A.E		24,454		—		—		32
LG Electronics Japan, Inc.		—		—		—		6,250
LG Electronics RUS, LLC		—		—		—		4,005
LG Electronics U.S.A., Inc.		—		—		—		2,128
P.T. LG Electronics Indonesia		482,099		—		—		1,254
HI-M Solutek Co., Ltd		—		—		—		9,636
LG Technology Ventures LLC		—		—		—		1,319
Others		330		—		462		1,579

Total		3,588,908		200		342,462		482,133

(*1)	For the year ended December 31, 2024, WooRee E&L Co., Ltd., AVATEC Co., Ltd. and YAS Co., Ltd. were excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.

(*2)	Others include the amount of the acquisition of property, plant, and equipment.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2023
					Purchase and Others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*)
Associates
AVATEC Co., Ltd.		—		—		43,662		11,003
Paju Electric Glass Co., Ltd.		—		15,200		176,831		4,341
WooRee E&L Co., Ltd.		—		—		7,853		513
YAS Co., Ltd.		—		—		9,832		23,202
Material Science Co., Ltd.		—		—		—		179
Entity that has significant influence over the Controlling Company
LG Electronics Inc.		231,935		—		22,370		501,094
Subsidiaries of the entity that has significant influence over the Controlling Company
LG Electronics India Pvt. Ltd.		47,031		—		—		270
LG Electronics Vietnam Haiphong Co., Ltd.		434,789		—		—		7,090

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2023
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*)
LG Electronics Nanjing New Technology Co., Ltd.		350,207		—		—		451
LG Electronics do Brasil Ltda.		29,249		—		—		316
LG Innotek Co., Ltd.		7,754		—		14,970		100,272
LG Electronics Mlawa Sp. z o.o.		811,880		—		—		1,611
LG Electronics Reynosa S.A. DE C.V.		826,547		—		—		810
LG Electronics Egypt S.A.E		20,225		—		—		66
LG Electronics Japan, Inc.		114		—		—		6,278
LG Electronics RUS, LLC		360		—		—		2,359
LG Electronics U.S.A., Inc.		—		—		—		2,177
P.T. LG Electronics Indonesia		448,528		—		—		2,231
LG Electronics Nanjing Vehicle Components Co.,Ltd.		1,414		—		—		—
LG Technology Ventures LLC		—		—		—		2,596
HI-M Solutek Co., Ltd		—		—		9		7,316
Others		15		—		142		1,502

Total		3,210,048		15,200		275,669		675,677

(*)	Others include the amount of the acquisition of property, plant, and equipment.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(c)

Details of balances of receivables and payables from transaction with related parties as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Associates
AVATEC Co., Ltd.(*1)		—		—		—		4,775
Paju Electric Glass Co., Ltd.		—		—		64,140		56,136
WooRee E&L Co., Ltd.(*1)		—		695		—		2,219
YAS Co., Ltd.(*1)		—		—		—		12,483
Material Science Co., Ltd.		—		—		261		118
Entity that has significant influence over the Controlling Company
LG Electronics Inc. (*2)		179,710		63,284		1,071,592		1,140,260
Subsidiaries of the entity that has significant influence over the Controlling Company
LG Electronics India Pvt. Ltd.		3,317		2,013		—		35
LG Electronics Vietnam Haiphong Co., Ltd.		72,521		76,952		921		1,403
LG Electronics Nanjing New Technology Co., Ltd.		61,922		38,502		15		27
LG Electronics do Brasil Ltda.		13,184		6,252		—		32
LG Innotek Co., Ltd. (*3)		1,803		3,002		207,258		216,049

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
LG Electronics Mlawa Sp. z o.o.		149,789		101,357		131		—
LG Electronics Reynosa, S.A. DE C.V.		55,500		64,208		—		109
LG Electronics Japan, Inc.		—		114		548		632
P.T. LG Electronics Indonesia		63,719		46,146		53		108
LG Electronics Taiwan Taipei Co., Ltd.		—		—		63		115
LG Electronics Egypt S.A.E		3,877		369		7		1
Others		261		251		5,779		2,184

Total		605,603		403,145		1,350,768		1,436,686

(*1)	For the year ended December 31, 2024, as it was excluded from related parties and others due to loss of significant influence, there are no outstanding receivables or payables.

(*2)	Trade accounts and note payable and others for LG Electronics Inc. as of December 31, 2024 and 2023 includes long-term borrowings of 1,000,000 million (see Note 12.(c)).

(*3)	Trade accounts and note payable and others for LG Innotek Co., Ltd. as of December 31, 2024 and 2023 includes deposits received amount 180,000 million from lease agreement.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(d)

Details of significant financial transactions with related parties and others for the years ended December 31, 2024 and 2023, are as follows:


	2024
(In millions of won)	Company Name	Capital increase		Collection of loans
Associates	WooRee E&L Co., Ltd. (*)		—		256
Entity that has significant influence over the Company	LG Electronics Inc.		436,031		—

(*)	For the year ended December 31, 2024, it was excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.


	2023
(In millions of won)	Company Name	Borrowings		Collection of loans
Associates	WooRee E&L Co., Ltd.		—		183
Entity that has significant influence over the Company	LG Electronics Inc.		1,000,000		—

The Group entered into a loan agreement with LG Electronics Inc. on March 27, 2023 for a total borrowing amount of 1,000,000 million, and received 650,000 million on March 30, 2023 and 350,000 million on April 20, 2023.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(e)

Large Enterprise Group Transactions

According to the ‘Related Party Disclosures’ under the Korean IFRS 1024, although not included in the scope of related parties, the major transaction details with the Large Enterprise Group subsidiaries and their affiliates, as well as the amounts of receivables and payables for the years ended December 31, 2024 and 2023, in accordance with the Monopoly Regulation and Fair Trade Act, are as follows:


(In millions of won)
	For the year ended December 31, 2024				December 31, 2024
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.		105,300		2,765		—		164
LG Chem Ltd. and its subsidiaries		500		567,215		188		239,895
D&O Corp. and its subsidiaries(*1)		270		72,093		—		86,714
LG Corp.(*2)		—		63,471		7,551		10,731
LG Management Development Institute		—		30,565		3		340
LG CNS Co., Ltd. and its subsidiaries		184		249,674		—		78,229
LG Household & Health Care Ltd. and its subsidiaries		—		96		—		—
HS AD Inc. and its subsidiaries		—		5,439		—		542
Robostar Co., Ltd.		—		2,821		—		2,398

Total		106,254		994,139		7,742		419,013

(*1)	Among the matters related to D&O Corp. and its subsidiaries, S&I Corporation Co., Ltd. and Xi C&A Co., Ltd. were excluded from the large corporate group as of March 19, 2024 and reflected based on the transaction amount for the three-month period ended March 31, 2024.

(*2)	According to the lease agreement signed with LG Corp., no recognized lease liabilities as of December 31, 2024. The lease repayment for the year ended December 31, 2024 amounts to 9,681 million.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)
	For the year ended December 31, 2023				December 31, 2023
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.		-		2,458		—		206
LG Chem Ltd. and its subsidiaries		355		464,303		49		209,113
D&O Corp. and its subsidiaries.		2,016		660,714		—		105,757
LG Corp.(*1)		1,891		51,906		16,261		5,575
LG Management Development Institute		—		40,244		—		543
LG CNS Co., Ltd. and its subsidiaries		16		296,637		5		112,881
LG Household & Health Care Ltd. and its subsidiaries		—		108		—		1
HS AD Inc.(formerly, G2R Inc.) and its subsidiaries(*2)		—		19,226		—		5,687
Robostar Co., Ltd.		—		1,018		—		312

Total		4,278		1,536,614		16,315		440,075

(*1)

According to the lease agreement signed with LG Corp., the recognized lease liabilities as of December 31, 2023 are 8,493 million, and the lease liabilities are not included in the amount of ‘Trade accounts and notes payable and others’ above. The lease repayment for the year ended December 31, 2023 amounts to 8,328 million.

(*2)	G2R Inc. changed its name to HS AD Inc. on July 1, 2023.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(f)

Key management personnel compensation

Details of compensation costs of key management for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024		2023
Short-term benefits		2,397		2,291
Expenses related to the defined benefit plan		604		355

Total		3,001		2,646

Key management refers to the registered directors who have significant control and responsibilities over the Parent Company’s operations and business.

(g)

At the end of the reporting period, the Group did not set an allowance for doubtful accounts on the balance of receivables for related parties.

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

30.	Assets and Liabilities Held for Sale (Disposal Group)

For the year ended December 31, 2024, management of the Group decided to sell 80% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. to TCL CSOT. The contract was signed on September 26, 2024, and the transaction is expected to be completed within one year. As a result, the assets and liabilities held by LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets and liabilities held for sale.

(a)

Details of assets and liabilities held for sale


(In millions of won)	December 31, 2024
Disposal Group(*)
Cash and cash equivalents		158,415
Trade accounts and notes receivable, net		11,131
Other accounts receivables, net		10,809
Inventories		101,998
Prepaid income taxes		14,402
Other current assets and others		45,733
Property, plant and equipment, net		611,689
Intangible assets, net		775
Deferred tax assets		28,365

Total		983,317

Liabilities in the Disposal Group
Trade accounts and notes payable		466,907
Current financial liabilities		917,620
Other accounts payable		52,097
Accrued expenses		67,181
Advances received		2,364
Other Current liabilities and others		927
Non-current financial liabilities		149,745

Total		1,656,841

(*)	There is no impairment loss recognized for assets held for sale, as the net fair value of the disposal group is expected to exceed the carrying amount.

(b)

Accumulated income directly recognized as other comprehensive income in relation to the disposal group classified as held for sale is 291,363 million of foreign currency translation differences.

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Independent Auditor’s Report on Internal Control over Financial Reporting

for Consolidation Purposes

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

LG Display Co., Ltd.

Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We have audited Internal Control over Financial Reporting of LG Display Co., Ltd. and its subsidiaries (collectively referred to as the “Group”) for consolidation purposes as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting for consolidation purposes as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We also have audited, in accordance with Korean Standards on Auditing, the consolidated financial statements of the Group, which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flow for the year then ended, and notes to the consolidated financial statements including material accounting policy information, and our report dated March 4, 2025 expressed unqualified opinion.

Basis for Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under these standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for consolidation purposes section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of internal control over financial reporting purposes for consolidation purposes and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting for Consolidation Purposes

Management is responsible for designing, implementing and maintaining effective internal control over financial reporting for consolidation purposes, and for its assessment about the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on the Effectiveness of Internal Control over Financial Reporting for Consolidation Purposes.

Those charged with governance have the responsibilities for overseeing internal control over financial reporting for consolidation purposes.

Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for Consolidation Purposes

Our responsibility is to express an opinion on internal control over financial reporting for consolidation purposes of the Group based on our audit. We conducted the audit in accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting for consolidation purposes was maintained in all material respects.

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An audit of internal control over financial reporting for consolidation purposes involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of internal control over financial reporting for consolidation purposes and testing and evaluating the design and operating effectiveness of internal control over financial reporting for consolidation purposes based on the assessed risk.

Definition and Inherent Limitations of Internal Control over Financial Reporting for Consolidation Purposes

The Group’s internal control over financial reporting for consolidation purposes is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. The Group’s internal control over financial reporting for consolidation purposes includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Group; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the Group are being made only in accordance with authorizations of management and directors of the Group; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the Group’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting for consolidation purposes may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Sang-Woo Nam, Certified Public Accountant.

Seoul, Korea

March 4, 2025

This report is effective as at March 4, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Group’s internal control over financial reporting for consolidation purposes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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Management’s Report on the Effectiveness of

Internal Control over Financial Reporting for Consolidation Purposes

(English Translation of a Report Originally Issued in Korean)

To the Shareholders, Board of Directors and Audit Committee of LG Display Co., Ltd.

We, as the Chief Executive Officer (CEO) and the Internal Control over Financial Reporting Officer of LG Display Co., Ltd. (“the Group”), assessed the effectiveness of the design and operation of the Group’s Internal Control over Financial Reporting for consolidation purposes for the year ended December 31, 2024.

The Group’s management, including ourselves, is responsible for designing and operating internal control over financial reporting for consolidation purposes.

We assessed the design and operating effectiveness of internal control over financial reporting for consolidation purposes in the prevention and detection of an error or fraud which may cause material misstatements in the preparation and disclosure of reliable consolidated financial statements.

We designed and operated internal control over financial reporting for consolidation purposes in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting established by the Operating Committee of Internal Control over Financial Reporting in Korea. And, we conducted an evaluation of internal control over financial reporting for consolidation purposes based on Detailed Enforcement Rules of the Regulation on External Audit and Accounting, etc. Table 6 Internal Control over Financial Reporting Evaluation and Reporting Standards.

Based on the assessment results, we believe that the Group’s internal control over financial reporting for consolidation purposes, as at December 31, 2024, is designed and operated effectively, in all material respects, in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which cause material misunderstandings, and we have reviewed and verified this report with sufficient due care.

Internal control activities performed by the Group to address risks to embezzlement and other financial fraud

January 20, 2025

Cheoldong Jeong,

Chief Executive Officer

Sunghyun Kim,

Internal Control over Financial Reporting Officer Internal control over Financial Reporting for Consolidation Purposes

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Internal control activities performed by the Group to address risks to embezzlement and other financial fraud


Category	Control Activities Performed by the Group	Target Company	Design and Operation Assessment Results (Execution department, execution time, etc.)
Entity Level Control	<Operation of anti-fraud system> The management periodically notifies all executives and employees of the importance of ethical management related to the Code of Ethics and the Code of Conduct, and operates an anonymous reporting channel for violations of the Code of Ethics and internal accounting control regulations.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 16 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

	<Periodic monitoring of Segregation of Duty Status> Internal Control & Consolidation Accounting Team defines incompatible tasks, and periodically monitors and reports on the adequacy of segregation of duty and access rights.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

Control of Treasury	<Account Registration Management> The cash management Team Leader reviews and approves the adequacy of account registration.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

	<Seal, OTP management> Physical access to seals and OTPs is restricted except for the person in charge of the supervising department, and when using a seal, it can be stamped after confirming the purpose of use and approval details of the requesting department.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

	<Segregation of Duty related to payment> Register Preliminary Payment, Electronic Payment, Internal Account Transfer, Foreign Exchange Transaction, etc., are separate from those in charge of the creator and the approver.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

	<Daily Account Balance Reconciliation> The person in charge performs the reconciliation of the bank balance for each daily account and takes necessary action in case of any discrepancies.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 17 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

	<Restriction on the use of corporate credit cards> Corporate cards are managed according to standards such as usage limits for each position, and the system is set up to prohibit the expense processing and approval for improper use.	LG Display Co., Ltd., LG Display High-Tech (China) Co., Ltd. and 15 others	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

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LG DISPLAY CO., LTD.

Separate Financial Statements

For the Year Ended December 31, 2024

(With Independent Auditors’ Report Thereon)

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Contents


	Page
Independent Auditors’ Report		185
Separate Statements of Financial Position		189
Separate Statements of Comprehensive Loss		190
Separate Statements of Changes in Equity		191
Separate Statements of Cash Flows		192
Notes to the Separate Financial Statements		193
Independent Auditors’ Report on Internal Control over Financial Reporting		285
Management’s Report on the Effectiveness of Internal Control over Financial Reporting		287

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LOGO

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

LG Display Co., Ltd.

Opinion

We have audited the financial statements of LG Display Co., Ltd. (the Company), which comprise the statement of financial position as at December 31, 2024, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2024, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

We have also audited, in accordance with Korean Standards on Auditing, the Company’s Internal Control over Financial Reporting as of December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting, and our report dated March 4, 2025, expressed an unqualified opinion.

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

Samil PricewaterhouseCoopers, 100 Hangang-daero, Yongsan-gu, Seoul 04386, Korea, www.samil.com (a) Impairment test of cash generating units

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Reasons why the matter was determined to be a key audit matter

As described in Note 9 and 10, the Company has classified the carrying amounts of property, plant, and equipment of 11,913,336 million and intangible assets of 1,485,789 million recognized as of the end of the reporting period into Display, Display (Large OLED), and Display (AD PO) cash generating units (CGUs). The Company identified indications of impairment due to the carrying amount of net assets being higher than market value as of the end of the reporting period and continuous operating losses due to competitive display market conditions. The Company performed an impairment test on the CGUs by evaluating the recoverable amount using the value in use calculated by applying the discounted cash flow model.

How our audit addressed the Key Audit Matter

We have performed the following audit procedures to address the Key Audit Matter.

•

Understanding and evaluating the accounting policies and internal controls of the Company related to impairment testing

•

Testing internal controls such as the management’s review and approval of estimated business plan and significant assumptions for impairment testing

•

Evaluating the completeness and accuracy of underlying data used in management’s valuation model

•

Verifying whether future cash flow estimates are consistent with business plans approved by management

•

Evaluating the reasonableness of management’s business plan estimates by comparing business plans established for each CGU in prior periods with actual performance for the current period

•

Evaluating the competence and objectivity of independent external experts engaged by the Company

•

Performing sensitivity analysis to assess the magnitude of changes in significant assumptions applied in valuation models that can result in impairment loss

•

(b) Assessment of recognition of deferred tax assets

Reasons why the matter was determined to be a key audit matter

As described in Note 24 to the financial statements, deferred tax assets recognized by the Company as of the end of the reporting period for temporary differences, tax loss carryforwards, and tax credit carryforwards amount to 3,474,990 million KRW. The Company evaluated the realizability of deferred tax assets considering the probability of generating taxable profit against which temporary differences, unused tax loss carryforwards, and tax credit carryforwards can be utilized.

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How our audit addressed the Key Audit Matter

We have performed the following audit procedures to address the Key Audit Matter.

•

Understanding and evaluating the accounting policies and internal controls of the Company related to assessment of realizability of deferred tax assets

•

Testing internal controls such as management’s review and approval of significant assumptions in taxable profit forecasts and utilization of tax policy

•

Evaluating whether expected taxable profit estimates are based on approved business plans, past performance, transfer pricing, and dividend policies

•

Evaluating the appropriateness of management’s estimates on future taxable profit by comparing past estimated taxable income with actual performance for the current period

•

Evaluating the appropriateness of estimated timing for realization of temporary differences for tax purposes

•

Other Matters

The financial statements of the Company for the year ended December 31, 2023, were audited by another auditor who expressed an unqualified opinion on those statements on March 7,2023.

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Sang-Woo Nam, Certified Public Accountant.

Seoul, Korea

March 4, 2025

This report is effective as of March 4, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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LG DISPLAY CO., LTD.

Separate Statements of Financial Position

As of December 31, 2024 and 2023


(In millions of won)	Note	December 31, 2024			December 31, 2023

Assets
Cash and cash equivalents	4, 26		238,477			334,502
Deposits in banks	4, 26		—			20,000
Trade accounts and notes receivable, net	5, 15, 26, 29		4,964,594			3,077,901
Other accounts receivable, net	5, 26		215,920			95,178
Other current financial assets	6, 26		320,071			163,137
Inventories	7		1,786,678			1,780,959
Prepaid income tax			2,492			1,954
Classification of assets held for sale	30		1,016,645			—
Other current assets			102,518			116,851

Total current assets			8,647,395			5,590,482
Deposits in banks	4, 26		11			11
Investments	8		3,939,474			4,932,063
Other non-current accounts receivable, net	5, 26		9,679			13,833
Other non-current financial assets	6, 26		123,523			80,793
Property, plant and equipment, net	9		11,913,336			13,584,247
Intangible assets, net	10		1,485,789			1,683,029
Investment property	11		27,911			32,995
Deferred tax assets	24		3,474,990			3,387,504
Defined benefits assets, net	13		160,564			407,212
Other non-current assets			16,379			20,243

Total non-current assets			21,151,656			24,141,930

Total assets			29,799,051			29,732,412


Liabilities
Trade accounts and notes payable	26, 29		12,011,544			8,993,964
Current financial liabilities	12, 26, 27, 28, 29		5,866,670			3,850,822
Other accounts payable	26		1,438,724			2,334,289
Accrued expenses			483,236			461,819
Provisions	14		103,962			115,834
Advances received	15		899,164			608,044
Other current liabilities			62,195			57,487

Total current liabilities			20,865,495			16,422,259
Non-current financial liabilities	12, 26, 27, 28, 29		4,308,608			5,985,874
Non-current provisions	14		60,908			63,805
Long-term advances received	15		220,500			967,050
Other non-current liabilities	26		547,742			611,869

Total non-current liabilities			5,137,758			7,628,598

Total liabilities			26,003,253			24,050,857


Equity
Share capital	16		2,500,000			1,789,079
Share premium	16		2,821,006			2,251,113
Retained earnings (Accumulated deficit)	17		(1,525,208	)		1,641,363

Total equity			3,795,798			5,681,555

Total liabilities and equity			29,799,051			29,732,412

See accompanying notes to the separate financial statements.

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Separate Statements of Comprehensive Loss

For the years ended December 31, 2024 and 2023


(In millions of won, except loss per share amounts)	Note		2024			2023

Revenue		18, 29		25,178,688			19,811,015
Cost of sales		7, 19, 29		(24,476,213	)		(21,446,905	)

Gross profit (loss)				702,475			(1,635,890	)
Selling expenses		19, 20		(294,153	)		(280,262	)
Administrative expenses		19, 20		(781,822	)		(600,587	)
Research and development expenses		19		(1,427,125	)		(1,367,382	)

Operating loss				(1,800,625	)		(3,884,121	)


Finance income		22		704,770			2,411,597
Finance costs		22		(1,254,153	)		(877,350	)
Other non-operating income		21		1,702,506			995,791
Other non-operating expenses		21		(2,439,989	)		(1,278,031	)

Loss before income tax				(3,087,491	)		(2,632,114	)
Income tax benefit		23		52,755			913,413

Loss for the year				(3,034,736	)		(1,718,701	)


Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities		13		(131,835	)		49,817
Other comprehensive income (loss) for the year, net of income tax				(131,835	)		49,817

Total comprehensive loss for the year				(3,166,571	)		(1,668,884	)


Loss per share (in won)
Basic loss per share		25		(6,440	)		(4,512	)
Diluted loss per share		25		(6,440	)		(4,512	)

See accompanying notes to the separate financial statements.

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Separate Statements of Changes in Equity

For the years ended December 31, 2024 and 2023


(In millions of won)	Note		Share capital		Share premium		Retained earnings (Accumulated deficit)			Other capital		Total equity

Balances at January 1, 2023				1,789,079		2,251,113		3,310,247			—		7,350,439

Total comprehensive loss for the year
Loss for the year				—		—		(1,718,701	)		—		(1,718,701	)
Other comprehensive loss
Remeasurements of net defined benefit liabilities				—		—		49,817			—		49,817

Total comprehensive loss for the year				—		—		(1,668,884	)		—		(1,668,884	)

Balances at December 31, 2023				1,789,079		2,251,113		1,641,363			—		5,681,555

Balances at January 1, 2024				1,789,079		2,251,113		1,641,363			—		5,681,555

Total comprehensive loss for the year
Loss for the year				—		—		(3,034,736	)		—		(3,034,736	)
Other comprehensive loss
Remeasurements of net defined benefit liabilities				—		—		(131,835	)		—		(131,835	)

Total comprehensive loss for the year				—		—		(3,166,571	)		—		(3,166,571	)

Transaction with owners, recognized directly in equity
Capital increase		16		710,921		569,893		—			—		1,280,814

Balances at December 31, 2024				2,500,000		2,821,006		(1,525,208	)		—		3,795,798

See accompanying notes to the separate financial statements.

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Separate Statements of Cash Flows

For the years ended December 31, 2024 and 2023


(In millions of won)	Note		2024			2023

Cash flows from (used in) operating activities:
Cash generated from operations		28		724,337			30,185
Income taxes paid				(12,900	)		(76,208	)
Interests received				20,559			15,400
Interests paid				(634,631	)		(610,152	)

Cash flows from (used in) operating activities				97,365			(640,775	)

Cash flows from (used in) investing activities:
Dividends received				228,833			1,887,196
Increase in deposits in banks				—			(20,000	)
Proceeds from withdrawal of deposits in banks				20,000			42,804
Acquisition of financial assets at fair value through other comprehensive income				—			(3,000	)
Proceeds from disposal of financial assets at fair value through other comprehensive income				—			2,671
Proceeds from disposal of financial assets at fair value through profit or loss				5,185			—
Acquisition of investments				(979,633	)		(98,740	)
Proceeds from disposal of investments				942,708			—
Acquisition of property, plant and equipment				(1,380,057	)		(2,145,138	)
Proceeds from disposal of property, plant and equipment				248,271			488,194
Acquisition of intangible assets				(745,033	)		(650,877	)
Proceeds from disposal of intangible assets				6,257			6,328
Proceeds from settlement of derivatives				274,173			178,610
Decrease in short-term loans				19,697			27,411
Increase in deposits				(1,019	)		(354	)
Decrease in deposits				593			134
Proceeds from disposal of greenhouse gas emission permits				14,394			6,659

Cash flows used in investing activities:				(1,345,631	)		(278,102	)

Cash flows from (used in) financing activities:		28
Proceeds from short-term borrowings				5,496,777			5,960,167
Repayments of short-term borrowings				(4,740,405	)		(6,488,262	)
Proceeds from issuance of bonds				—			469,266
Repayments of bonds				(370,000	)		(433,990	)
Proceeds from long-term borrowings				2,114,901			2,839,878
Repayments of current portion of long-term borrowings				(2,622,312	)		(1,778,174	)
Payment guarantee fee received				7,427			7,195
Repayments of payment guarantee fee				(1,114	)		(2,134	)
Capital increase				1,292,455			—
Transaction cost from capital increase				(11,641	)		—
Payment of lease liabilities				(13,847	)		(12,879	)

Cash flows from financing activities				1,152,241			561,067

Net decrease in cash and cash equivalents				(96,025	)		(357,810	)
Cash and cash equivalents at January 1				334,502			692,312

Cash and cash equivalents at December 31				238,477			334,502

See accompanying notes to the separate financial statements.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

1.	Organization and Description of Business

LG Display Co., Ltd. (the “Company”) was incorporated in February 1985 and the Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Company is to manufacture and sell displays and its related products. As of December 31, 2024, the Company is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of December 31, 2024, LG Electronics Inc., a major shareholder of the Company, owns 36.72% (183,593,206 shares) of the Company’s common stock.

As of December 31, 2024, 500,000,000 shares of the Company’s common stock are listed on Korea Exchange under the identifying code 034220, and 20,944,314 American Depository Shares (“ADSs”, 2 ADSs represent one share of common stock) are listed on the New York Stock Exchange under the symbol “LPL”.

2.	Basis of Presenting Financial Statements

(a)

Application of accounting standards

In accordance with the Act on External Audits of Stock Companies, Etc., these separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

These financial statements are separate financial statements prepared in accordance with K-IFRS No.1027, Separate Financial Statements, presented by a parent, an investor in an associate or a venture in a joint ventures, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.

The separate financial statements were authorized for issuance by the Board of Directors on January 20, 2025, which will be submitted for approval to the shareholders’ meeting to be held on March 20, 2025.

(b)

Basis of Measurement

The separate financial statements have been prepared on the historical cost basis except for the following material items in the separate statement of financial position:

•

derivative financial instruments at fair value, financial assets at fair value through profit or loss(“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss(“FVTPL”), and

•

net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

(c)

Functional and Presentation Currency

Items included in the financial statements are measured using the currency of the primary economic environment in which each entity operates (the “functional currency”). The separate financial statements are presented in Korean won, which is the Company’s functional currency.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Presenting Financial Statements, Continued

(d)

Estimates and Judgments

As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

(i)

Impairment of goodwill, etc.

The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use calculations (Note 10).

(ii)

Income Tax

The Company’s taxable income generated from these operations are subject to income taxes based on tax laws and interpretations of tax authorities in numerous jurisdictions. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company estimates the income tax effects expected to be incurred in the future as a result of its operating activities up to the end of the reporting period and recognizes them as current and deferred income taxes. However, the actual future income tax burden may not match the recognized related assets and liabilities, and such differences may affect the current and deferred income tax assets and liabilities at the time the expected income tax effects are realized.

(iii)

Net defined benefit liabilities (defined benefit assets)

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies

The principal accounting policies applied in the preparation of these separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a)

Interest in subsidiaries, associates and joint ventures

These separate financial statements are prepared and presented in accordance with K-IFRS No.1027, Separate Financial Statements. The Company applied the cost method to investments in subsidiaries, associates and joint ventures. Dividends from subsidiaries, associates or joint ventures are recognized in profit or loss when the right to receive the dividend is established.

(b)

Foreign Currency Translation

Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate on the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on translation are recognized in profit or loss, except for differences arising on an investment in equity instruments designated as at FVOCI and a financial asset and liability designated as a cash flow hedge, which are recognized in other comprehensive income. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition are recognized in profit or loss in the period in which they arise. Foreign currency differences arising from assets and liabilities in relation to the investing and financing activities including borrowings, bonds and cash and cash equivalents are recognized in finance income (costs) in the separate statement of comprehensive income (loss) and foreign currency differences arising from assets and liabilities in relation to activities other than investing and financing activities are recognized in other non-operating income (expense) in the separate statement of comprehensive income (loss). Foreign currency differences are presented in gross amounts in the separate statement of comprehensive income (loss).

(c)

Cash and cash equivalents

Cash and cash equivalents include all cash balances and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash.

(d)

Inventories

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments

(i)

Non-derivative financial assets

Recognition and initial measurement

Trade receivables and debt instruments issued are initially recognized when they are originated. All other financial assets are recognized in statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI – debt investment; FVOCI – equity investments; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the subsequent reporting period following the change in the business model.

A financial asset is measured as at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

•

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

•

its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

•

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

•

the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured as at FVTPL. This includes all derivative financial assets. At initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

ii)

Financial assets: business model

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

•

how the performance of the portfolio is evaluated and reported to the Company’s management;

•

the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; and

•

the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sale for this purpose.

A financial asset that is held for trading or is managed and whose performance is evaluated on a fair value basis is measured at FVTPL.

iii)

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers.

•

contingent events that would change the amount or timing of cash flows:

•

terms that may adjust the contractual coupon rate, including variable-rate features;

•

prepayment and extension features; and

•

terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse features)

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

iv)

Financial assets: Subsequent measurement and gains and losses


Financial assets at FVTPL		These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost		These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Debt investments at FVOCI		These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, it transfers the rights to receive the contractual cash flows of the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it transfers or does not retain substantially all the risks and rewards of ownership of a transferred asset, and does not retain control of the transferred asset.

If the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

(ii)

Non-derivative financial liabilities

The Company classifies financial liabilities into two categories, financial liabilities at FVTPL and other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities, and recognizes them in the separate statement of financial position when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities at FVTPL include financial liabilities held for trading or designated as such upon initial recognition at FVTPL. After initial recognition, financial liabilities at FVTPL are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issuance of financial liabilities are recognized in profit or loss as incurred.

Non-derivative financial liabilities other than financial liabilities classified as at FVTPL are classified as other financial liabilities and measured initially at fair value minus transaction costs that are directly attributable to the issuance of financial liabilities. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. As of December 31, 2023, non-derivative financial liabilities comprise borrowings, bonds, trade accounts and notes payable, other accounts payable and others.

The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.

(iii)

Derivative financial instruments

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

Hedge Accounting

If necessary, the Company designates derivatives as hedging items to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Company’s management formally designates and documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship, both at the inception of the hedge relationship as well as on an ongoing basis.

Fair value hedges

Change in the fair value of a derivative hedging instrument designated as a fair value hedge and the hedged item is recognized in profit or loss, respectively. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the statement of comprehensive income (loss). The Company discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting.

ii)

Cash flow hedges

When a derivative designated as a cash flow hedging instrument meets the criteria of cash flow hedge accounting, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and the ineffective portion of changes in the fair value of the derivative is recognized in profit or loss. The Company discontinues cash flow hedge accounting if the hedging instruments expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(e)

Financial Instruments, Continued

Embedded derivative

Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Other derivative financial instruments

Other derivative financial instruments are measured at fair value and changes of their fair value are recognized in profit or loss.

(iv)

Financial guarantee agreement

•

The amount determined in accordance with the expected credit loss model under Korean IFRS 1109 Financial Instruments

•

The amount initially recognized less, where appropriate, the cumulative amount of income recognized in accordance with Korean IFRS 1115 Revenue from Contracts with Customers

(f)

Property, Plant and Equipment

(i)

Recognition and measurement

(ii)

Subsequent costs

Subsequent expenditure on an item of property, plant and equipment is recognized as part of its cost only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(f)

Property, Plant and Equipment, Continued

(iii)

Depreciation

Land is not depreciated and depreciation of other items of property, plant and equipment is recognized in profit or loss on a straight-line basis, reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by the Company. The residual value of property, plant and equipment is zero.

Typical estimated useful lives of the assets are as follows:


		Typical estimated useful lives (years)
Buildings and structures		20~40
Machinery		4, 5
Furniture and fixtures		4
Equipment, tools and vehicles		2, 4, 12
Right-of-use assets		(*)

(*)

The Company depreciates the right-of-use assets from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate and any changes are accounted for as changes in accounting estimates.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(g)

Borrowing Costs

The Company capitalizes borrowing costs, which includes interests and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs, directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. To the extent that the borrowings are directly attributable to the purpose of obtaining a qualifying asset, the Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Company immediately recognizes other borrowing costs as an expense.

(h)

Government Grants

In case there is reasonable assurance that the Company will comply with the conditions attached to a government grant, the government grant is recognized as follows:

(i)

Grants related to the purchase or construction of assets

(ii)

Grants for compensating the Company’s expenses incurred

A government grant that compensates the Company for expenses incurred is recognized in profit or loss as a deduction from relevant expenses on a systematic basis in the periods in which the expenses are recognized.

(iii)

Other government grants

A government grant that becomes receivable for the purpose of giving immediate financial support to the Company with no compensation for expenses or losses already incurred or no future related costs is recognized as income of the period in which it becomes receivable.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(i)

Intangible Assets

Intangible assets are initially measured at cost. Subsequently, intangible assets are measured at cost less accumulated amortization and accumulated impairment losses.

(i)

Goodwill

(ii)

Research and development

•

the technical feasibility of completing the intangible asset so that it will be available for use or sale,

•

its intention to complete the intangible asset and use or sell it,

•

its ability to use or sell the intangible asset,

•

how the intangible asset will generate probable future economic benefits (among other things, the Company can demonstrate the usefulness of the intangible asset by existence of a market for the output of the intangible asset or the intangible asset itself if it is to be used internally),

•

the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

•

its ability to measure reliably the expenditure attributable to the intangible asset during its development.

The expenditure capitalized includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use, and borrowing costs on qualifying assets.

(iii)

Other intangible assets

Other intangible assets include intellectual property rights, software, customer relationships, technology, memberships and others. The Company currently has a number of patent license agreements related to product production. When the amount of payments is determined, it is recognized as intangible assets as intellectual property rights and other account payables, respectively, and the intangible assets are amortized on a straight-line basis over the patent license period.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(i)

Intangible Assets, Continued

(iv)

Subsequent costs

(v)

Amortization

Typical estimated useful lives of the intangible assets are as follows:


		Typical estimated useful lives (years)
Intellectual property rights		5, 10, (*1)
Software		4, (*1)
Technology		10
Development costs		(*2)
Condominium and golf club memberships		Indefinite

(*1)

Patent royalty (included in intellectual property rights) and software license are amortized over the useful lives considering the contract period.

(*2)

Capitalized development costs are amortized over the useful lives considering the life cycle of the developed products.

(j)

Investment Property

Subsequent expenditure on an item of investment property is recognized as part of its cost only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognized. All other subsequent expenditures are expensed in the period in which it is incurred.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(j)

Investment Property, Continued

(k)

Impairment

(i)

Financial assets

Financial instruments and contract assets

The Company recognizes loss allowance for financial assets measured at amortized cost and debt investments at FVOCI at the ‘expected credit loss’ (ECL).

The Company recognizes a loss allowance for the life-time expected credit losses except for following, which are measured at 12-month ECLs:

•

debt instruments that are determined to have low credit risk at the reporting date; and

•

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both qualitative and quantitative information and analysis, based on the Company’s historical experience and informed credit assessment including forward-looking information.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

Estimation of expected credit losses

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(k)

Impairment, Continued

Credit-impaired financial assets

At each reporting period-end, the Company assesses whether financial assets carried at amortized cost and debt instruments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

•

significant financial difficulty of the issuer or the borrower;

•

it is probable that the borrower will enter bankruptcy or other financial reorganization; or

•

the disappearance of an active market for a security because of financial difficulties.

Presentation of loss allowance for ECL in the statement of financial position

Write-off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations for recovering the financial asset in its entirety or a portion thereof. The Company assess whether there are reasonable expectations of recovering the contractual cash flows from customers and individually assess the timing and amount of write-off. The Company expects no significant recovery from the amount written-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(k)

Impairment, Continued

(ii)

Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than assets arising from employee benefits, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, the recoverable amount is estimated each year.

Recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit (“CGU”) is the smallest group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In identifying whether cash inflows from an asset or group of assets are largely independent of the cash inflows from other assets or groups of assets, the Company considers various factors including how management monitors the entity’s operations or how management makes decisions about continuing or disposing of the entity’s assets and operations. In the Company’s consolidated financial statements, each CGU is comprised of a group of assets of the Company and its other subsidiaries, because the non-current assets of the Company generate independent cash inflows only in combination with certain assets of the subsidiary. The Company’s cash-generating units consist of Display CGU, Display (Large OLED) CGU and Display (AD PO) CGU. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or cash-generating unit is determined as the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Fair value less costs to sell is based on the best information available to reflect the amount that the Company could obtain from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(l)

Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i)

As a lessee

At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of its relative stand-alone price. For certain leases, the Company accounts for the lease and non-lease components as a single lease component by applying the practical expedient not to separate non-lease components.

The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(l)

Lease, Continued

Lease payments included in the measurement of the lease liability comprise the following:

•

fixed payments, including in-substance fixed payments;

•

variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

•

amounts expected to be payable under a residual value guarantee; and

•

the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured the Company recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the remeasurement in profit or loss.

The Company presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and lease liabilities in ‘financial liabilities’ in the separate statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii)

As a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(l)

Lease, Continued

Contracts may contain both lease and non-lease components. The Company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

At the commencement date, the Company recognizes assets held under a finance lease in its statement of financial position and present them as a receivable at an amount equal to the net investment in the lease and recognize finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue’.

(m)

Provisions

A provision is recognized, as a result of a past event, if the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

The Company recognizes a liability for warranty obligations based on the estimated costs expected to be incurred under its basic limited warranty. This warranty covers defective products and is normally applicable for a warranty period from the date of purchase. These liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims on those repairs and cost per claim to satisfy the Company’s warranty obligation. Warranty costs primarily include raw materials and labor costs. As these factors are impacted by actual experience and future expectations, management periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Accrued warranty obligations are included in the current and non-current provisions.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(n)

Non-current Assets Held for Sale

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily from sale rather than through continuing use. In order to be classified as held for sale, the asset (or disposal group) is available for immediate sale in its present condition and its sale is highly probable. The assets (or disposal groups) that are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell on initial classification. The Company recognizes an impairment loss for any subsequent decrease in fair value of the asset (or disposal group) for which an impairment loss was recognized on initial classification as held-for-sale and a gain for any subsequent increase in fair value in profit or losses, up to the cumulative impairment loss previously recognized.

The Company does not depreciate a non-current asset while it is classified as held for sale or while it is part of a disposal group classified as held for sale.

(o)

Employee Benefits

(i)

Short-term employee benefits

Short-term employee benefits that are due to be settled within twelve months after the end of the period in which the employees render the related service are recognized in profit or loss on an undiscounted basis. The expected cost of profit-sharing and bonus plans and others are recognized when the Company has a present legal or constructive obligation to make payments as a result of past events and a reliable estimate of the obligation can be made.

(ii)

Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods.

(iii)

Defined contribution plan

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(o)

Employee Benefits, continued

(iv)

Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than defined contribution plans. The Company’s net obligation in respect of its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plan assets is deducted.

The calculation is performed annually by an independent actuary using the projected unit credit method. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Company recognizes remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions related to the defined benefit plans in other comprehensive income and transfers immediately to retained earnings.

The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Consequently, the net interest on the net defined benefit liability (asset) now comprises: interest cost on the defined benefit obligation, interest income on plan assets, and interest on the effect of the asset ceiling.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(v)

Termination benefits

The Company recognizes expense for termination benefits at the earlier of the date when the entity can no longer withdraw the offer of those benefits and when the entity recognizes costs for a restructuring involving the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, the Company measures the termination benefit with present value of future cash payments.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(p)

Revenue from contracts with customers

The Company recognizes revenue according to the five-stage revenue recognition model (① Identifying the contract ®②Identifying performance obligations ®③ Determining transaction price ®④ Allocating the transaction price to performance obligations ®⑤ Recognizing revenue for performance obligations).

The Company generates revenue primarily from sale of display panels. Product revenue is recognized when a customer obtains control over the Company’s products, which typically occurs upon shipment or delivery depending on the terms of the contracts with the customer.

The Company includes return option in the sales contract of display panels with its customers and the consideration receivable from the customer is subject to change due to returns. The Company estimates an amount of variable consideration by using the expected value method with which the Company expects to better predict the amount of consideration. The Company includes in the transaction price an amount of variable consideration estimated only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur during the return period when the uncertainty associated with the variable consideration is subsequently resolved. The Company recognizes a refund liability and an asset for its right to recover products from customers if the Company receives consideration from a customer and expects to refund some or all of that consideration to the customer. Sales taxes or value-added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and are excluded from revenues in the separate statement of comprehensive income (loss).

(q)

Operating Segments

An operating segment is a component of the Company that: 1) engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with other components of the Company, 2) whose operating results are reviewed regularly by the Company’s chief operating decision maker (“CODM”) in order to allocate resources and assess its performance, and 3) for which discrete financial information is available. Management has determined that the CODM of the Company is the Board of Directors. The CODM does not receive and therefore does not review discrete financial information for any component of the Company. Consequently, no operating segment information is included in these separate financial statements. Entity wide disclosures of geographic and product revenue information are provided in Note 18 to these consolidated financial statements.

(r)

Finance Income and Finance Costs

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(s)

Income Tax

(i)

Current tax

(ii)

Deferred tax

Deferred tax is recognized, using the asset and liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that the differences relating to investments in subsidiaries, associates and joint ventures will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period, considering the likelihood of generating taxable income against which temporary differences, unused tax loss carryforwards, and tax credit carryforwards can be utilized. The potential taxable income is estimated based on business plans approved by management, historical experience of taxable income estimates, and tax policies including the transfer pricing of the separate entity. Additionally, future taxable income includes the anticipated permanent differences, considering the realization effect of temporary differences consistent with the business plan and the dividend policy of the separate entity. The Company recognizes deferred tax assets to the extent that it is probable that sufficient taxable income will be generated in the future, or there are sufficient taxable temporary differences available to utilize unused tax losses, etc.

The Company offsets deferred tax assets and deferred tax liabilities if, and only if, the Company has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(t)

Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding, adjusted for the effects of all dilutive potential common shares such as convertible bonds and others.

(u)

Accounting standards and Interpretation issued and adopted by the Company

The Company has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2024.

(i)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, and Non-current Liabilities with Covenants

(ii)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

(iii)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(u)

Accounting standards and Interpretation issued and adopted by the Company, Continued

(iv)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

(v)

New standards and interpretations not yet adopted by the Company

The following new accounting standards and interpretations have been published that are not mandatory for December 31, 2024 reporting periods and have not been early adopted by the Company.

(i)

The amendment requires the entity to disclose the relevant information when an entity estimates a spot exchange rate because exchangeability between two currencies is lacking. The amendments will take effect in fiscal years beginning on or after January 1, 2025, and will allow for early application. The amendments do not have a significant impact on the financial statements.

(ii)

Amendments to Korean IFRS 1109 Financial Instruments, Amendments to Korean IFRS 1107 Financial Instruments: Disclosure

•

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

•

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

•

add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term;

•

update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued

(v)

New standards and interpretations not yet adopted by the Company, Continued

(iii)

Annual Improvements to Korean IFRS – Volume 11

Annual Improvements to Korean IFRS – Volume 11 shall be effective for fiscal years beginning on or after January 1, 2026, and early application is effective. The amendments are not expected to have a significant impact on the financial statements.

•

Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards: Hedge accounting by a first-time adopter

•

Korean IFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition and implementation guidance

•

Korean IFRS 1109 Financial Instruments: Derecognition of lease liabilities and definition of transaction price

•

Korean IFRS 1110 Consolidated Financial Statements: Determination of a ‘de facto agent’

•

Korean IFRS 1007 Statement of Cash Flows: Cost method

4.	Cash and Cash Equivalents and Deposits in Banks

Details of cash and cash equivalents and deposits in banks as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Current assets
Cash and cash equivalents
Deposits		238,477		334,502
Deposits in banks
Time deposits (*)		—		20,000
Non-current assets
Deposits in banks
Deposit for checking account		11		11

(*)	The balance as of December 31, 2023, consists of funds for business cooperation to aid LG Group companies’ suppliers, which is restricted in use.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade Accounts and Notes Receivable, and Other Accounts Receivable

(a)

Details of trade accounts and notes receivable and other accounts receivable as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Trade accounts and notes receivable		4,964,594		3,077,901
Other accounts receivable
Non-trade receivables, net		206,313		108,769
Accrued income, net		19,286		242

Subtotal		225,599		109,011

Total		5,190,193		3,186,912

(b)

The aging of trade accounts and notes receivable and other accounts receivable as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024
	Original Amount				Allowance for doubtful account
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due		4,962,069		183,436		(362	)		(283	)
1-15 days past due		2,887		37,621		—			(2	)
16-30 days past due		—		1,914		—			(1	)
31-60 days past due		—		350		—			(3	)
More than 60 days past due		—		2,575		—			(8	)

Total		4,964,956		225,896		(362	)		(297	)

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade Accounts and Notes Receivable, and Other Accounts Receivable, Continued


(In millions of won)	December 31, 2023
	Original Amount				Allowance for doubtful account
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due		3,074,502		105,816		(234	)		(62	)
1-15 days past due		198		1,357		—			—
16-30 days past due		3,435		156		—			(2	)
31-60 days past due		—		168		—			(2	)
More than 60 days past due		—		1,592		—			(12	)

Total		3,078,135		109,089		(234	)		(78	)

The movement in the allowance for doubtful account in respect of trade accounts and notes receivable and other accounts receivable for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024				2023
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable		Other accounts receivable
Beginning balance		234		78		229		1,418
(Reversal of) bad debt expense		128		219		5		(8	)
Write-off		—		—		—		(1,332	)

Ending balance		362		297		234		78

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

6.	Other Financial Assets

Details of other financial assets as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Current assets
Financial assets at fair value through profit or loss
Derivatives (*1)		186,676		136,762
Fair value hedging derivatives
Derivatives (*2)		99,116		—
Financial assets at amortized cost
Deposits		8,181		—
Short-term loans		26,098		26,375

Subtotal		34,279		26,375

Total		320,071		163,137

Non-current assets
Financial assets at fair value through profit or loss
Equity securities		22,138		3,967
Convertible securities		—		1,838
Derivatives (*1)		69,575		32,941

Subtotal		91,713		38,746

Fair value hedging derivatives
Derivatives (*2)		19,982		—
Financial assets at amortized cost
Deposits		783		8,538
Long-term loans		11,045		33,509

Subtotal		11,828		42,047

Total		123,523		80,793

(*1)

The derivatives, which are not designated as hedging instruments, arise from cross currency interest rate swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)

The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

7.	Inventories

Details of inventories as of December 31, 2024 and 2023 are as follows:

December 31, 2024


(In millions of won)
	Cost		Valuation allowance			Carrying amount
Finished goods		377,955		(29,308	)		348,647
Work-in-process		1,003,741		(79,673	)		924,068
Raw materials		435,557		(16,441	)		419,116
Supplies		111,539		(16,692	)		94,847

Total		1,928,792		(142,114	)		1,786,678

December 31, 2023


(In millions of won)
	Cost		Valuation allowance			Carrying amount
Finished goods		321,638		(42,155	)		279,483
Work-in-process		1,071,205		(66,180	)		1,005,025
Raw materials		435,412		(27,334	)		408,078
Supplies		106,548		(18,175	)		88,373

Total		1,934,803		(153,844	)		1,780,959

For the years ended December 31, 2024 and 2023, the amount of inventories recognized as cost of sales and loss reversal on valuation of inventories are as follows:


(In millions of won)
	2024			2023
Cost of sales		24,476,213			21,446,905
Inventories recognized as expense		24,487,943			21,482,257
Reversal of loss on valuation of inventories		(11,730	)		(35,352	)

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments

(a)

Details of investments in subsidiaries as of December 31, 2024 and 2023, are as follows:


(In millions of won)
Subsidiaries	Location	Business	December 31, 2024					December 31, 2023
Subsidiaries	Location	Business	Percentage of ownership			Carrying Amount		Percentage of ownership			Carrying Amount
LG Display America, Inc.	San Jose, U.S.A.	Sales of display products		100	%		36,815		100	%		36,815
LG Display Germany GmbH	Eschborn, Germany	Sales of display products		100	%		19,373		100	%		19,373
LG Display Japan Co., Ltd.	Tokyo, Japan	Sales of display products		100	%		15,686		100	%		15,686
LG Display Taiwan Co., Ltd.	Taipei, Taiwan	Sales of display products		100	%		35,230		100	%		35,230
LG Display Nanjing Co., Ltd.	Nanjing, China	Production of display products		100	%		593,726		100	%		593,726
LG Display Shanghai Co., Ltd.	Shanghai, China	Sales of display products		100	%		9,093		100	%		9,093
LG Display Guangzhou Co., Ltd.(*1)	Guangzhou, China	Production of display products		100	%		—		100	%		293,557
LG Display Shenzhen Co., Ltd.	Shenzhen, China	Sales of display products		100	%		3,467		100	%		3,467
LG Display Singapore Pte. Ltd.	Singapore	Sales of display products		100	%		1,250		100	%		1,250
L&T Display Technology (Fujian) Limited	Fujian, China	Production and sales of LCD module and LCD monitor sets		51	%		10,123		51	%		10,123
LG Display Yantai Co., Ltd.	Yantai, China	Production of display products		100	%		169,195		100	%		169,195
Nanumnuri Co., Ltd.	Gumi, South Korea	Business facility maintenance		100	%		800		100	%		800
LG Display (China) Co., Ltd.(*1)	Guangzhou, China	Production and sales of display products		51	%		—		51	%		723,086
Unified Innovative Technology, LLC	Wilmington, U.S.A.	Intellectual property management		100	%		9,489		100	%		9,489
LG Display Guangzhou Trading Co., Ltd.	Guangzhou, China	Sales of display products		100	%		218		100	%		218
Global OLED Technology, LLC	Sterling, U.S.A	OLED intellectual property management		100	%		164,322		100	%		164,322
LG Display Vietnam Haiphong Co., Ltd.	Haiphong, Vietnam	Production and sales of display products		100	%		672,658		100	%		672,658
Suzhou Lehui Display Co., Ltd.	Suzhou, China	Production and sales of LCD module and LCD monitor sets		100	%		121,640		100	%		121,640
LG DISPLAY FUND I LLC(*2)	Wilmington, U.S.A	Investment in venture business and technologies		100	%		97,936		100	%		91,105
LG Display High-Tech (China) Co., Ltd.	Guangzhou, China	Production and sales of display products		69	%		1,794,547		69	%		1,794,547
Money Market Trust(*3)	Seoul, Korea	Money market trust		100	%		140,600		100	%		92,900

							3,896,168					4,858,280

(*1)	For the year ended December 31, 2024, the Company reclassified as assets held for sale as a result of the ownership sale and purchase agreement.

(*2)	For the year ended December 31, 2024, the Company contributed 6,831 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Company’s percentage of ownership in LG DISPLAY FUND I LLC as a result of this additional investment.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

8.	Investments, Continued

(*3)	For the year ended December 31, 2024, the Company increased by 7,700 million as a result of acquisition and disposal of Money Market Trust. There was no change in the Company’s percentage of ownership in Money Market Trust with this regard.

(b)

Details of investments in associates as of December 31, 2024 and 2023, are as follows:


(In millions of won)
Associates	Location	Business	December 31, 2024					December 31, 2023
Associates	Location	Business	Percentage of ownership			Carrying Amount		Percentage of ownership			Carrying Amount
Paju Electric Glass Co., Ltd.	Paju, South Korea	Production of glass for display		40	%		39,608		40	%		45,089
WooRee E&L Co., Ltd.(*1)	Ansan, South Korea	Production of LED back light unit packages		—			—		13	%		7,106
YAS Co., Ltd.(*1)	Paju, South Korea	Development and production of deposition equipment for OLEDs		—			—		16	%		10,000
AVATEC Co., Ltd.(*1)	Daegu, South Korea	Processing and sales glass for display		—			—		14	%		8,000
Arctic Sentinel, Inc.	Los Angeles, U.S.A.	Development and production tablet for kids		10	%		—		10	%		—
Cynora GmbH	Bruchsal Germany	Development of organic light emitting materials for displays and lighting devices		10	%		—		10	%		—
Material Science Co., Ltd.(*2)	Seoul, South Korea	Development, production, and sales of materials for display		14	%		3,698		16	%		3,588

							43,306					73,783

(*1)	For the year ended December 31, 2024, due to loss significant influence, we reclassified the investments in associates as financial assets at fair value through profit or loss.

(*2)	For the year ended December 31, 2024, due to the investee’s disposal of treasury shares and issuance of new shares, the Company’s percentage of ownership decreased from 16% to 14%.

Although the Company’s respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Company is able to exercise significant influence through its right to appoint one or more directors to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

Dividends income recognized from subsidiaries and associates for the year ended December 31, 2024 amounted to 227,418 million (dividend income recognized from associates for the year ended December 31, 2023: 1,895,692 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Property, Plant and Equipment

(a)

Changes in property, plant and equipment for the years ended December 31, 2024 and 2023 are as follows:

(i)

2024


(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction- in-progress (*1)			Right-of-use asset			Others (*2)			Total
Acquisition cost as of January 1, 2024		472,813			6,674,304			37,381,457			563,966			6,148,883			38,260			1,063,452			52,343,135
Accumulated depreciation as of January 1, 2024		—			(3,429,293	)		(32,682,474	)		(473,444	)		—			(24,040	)		(749,958	)		(37,359,209	)
Accumulated impairment loss as of January 1, 2024		—			(180,065	)		(933,766	)		(5,739	)		(257,086	)		(222	)		(22,801	)		(1,399,679	)

Book value as of January 1, 2024		472,813			3,064,946			3,765,217			84,783			5,891,797			13,998			290,693			13,584,247
Additions		—			—			—			—			987,207			5,981			—			993,188
Depreciation(*3)		—			(274,828	)		(1,754,093	)		(47,949	)		—			(13,760	)		(246,840	)		(2,337,470	)
Disposals		(47,344	)		(28,581	)		(131,962	)		(166	)		—			—			(52,327	)		(260,380	)
Impairment loss(*4)		—			(28	)		(54,481	)		(1,275	)		(4,575	)		—			(5,052	)		(65,411	)
Others(*5)		873			531,979			3,084,160			28,186			(3,949,582	)		—			303,546			(838	)

Book value as of December 31, 2024		426,342			3,293,488			4,908,841			63,579			2,924,847			6,219			290,020			11,913,336

Acquisition cost as of December 31, 2024		426,342			7,171,402			39,810,253			570,406			3,177,621			40,423			1,194,446			52,390,893

Accumulated depreciation as of December 31, 2024		—			(3,698,897	)		(33,913,454	)		(500,935	)		—			(34,048	)		(883,419	)		(39,030,753	)

Accumulated impairment loss as of December 31, 2024		—			(179,017	)		(987,958	)		(5,892	)		(252,774	)		(156	)		(21,007	)		(1,446,804	)

(*1)	As of December 31, 2024, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)	Others mainly consist of tools and equipment.

(*3)	The Company has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

(*4)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5)	Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Property, Plant and Equipment, Continued

(ii)

2023


(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction- in-progress (*1)			Right-of- use asset			Others (*2)			Total
Acquisition cost as of January 1, 2023		476,045			5,265,179			36,539,468			554,850			9,393,158			40,702			926,870			53,196,272
Accumulated depreciation as of January 1, 2023		—			(3,210,075	)		(33,383,114	)		(445,727	)		—			(34,895	)		(669,004	)		(37,742,815	)
Accumulated impairment loss as of January 1, 2023		—			(180,864	)		(871,500	)		(5,919	)		(328,555	)		(347	)		(21,428	)		(1,408,613	)

Book value as of January 1, 2023		476,045			1,874,240			2,284,854			103,204			9,064,603			5,460			236,438			14,044,844
Additions		—			—			—			—			1,894,782			21,568			—			1,916,350
Depreciation(*3)		—			(225,364	)		(1,300,227	)		(44,680	)		—			(13,030	)		(219,406	)		(1,802,707	)
Disposals		(330	)		(758	)		(507,869	)		(1,921	)		—			—			(43,635	)		(554,513	)
Impairment loss(*4)		—			—			(2,022	)		(6	)		—			—			(6,493	)		(8,521	)
Others(*5)		(2,902	)		1,416,828			3,290,481			28,186			(5,067,588	)		—			323,789			(11,206	)

Book value as of December 31, 2023		472,813			3,064,946			3,765,217			84,783			5,891,797			13,998			290,693			13,584,247

Acquisition cost as of December 31, 2023		472,813			6,674,304			37,381,457			563,966			6,148,883			38,260			1,063,452			52,343,135

Accumulated depreciation as of December 31, 2023		—			(3,429,293	)		(32,682,474	)		(473,444	)		—			(24,040	)		(749,958	)		(37,359,209	)

Accumulated impairment loss as of December 31, 2023		—			(180,065	)		(933,766	)		(5,739	)		(257,086	)		(222	)		(22,801	)		(1,399,679	)

(*1)	As of December 31, 2023, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)	Others mainly consist of tools and equipment.

(*3)	The Company has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

(*4)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5)	Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment

(b)

Capitalized borrowing costs and capitalization rate for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Capitalized borrowing costs		23,862			208,733
Capitalization rate		5.44	%		4.96	%

(c)

The Company provides a portion of property, plant and equipment as an operating lease. For the year ended December 31, 2024, rental income from property, plant and equipment is 1,811 million (2023: 1,886 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets

(a)

Changes in intangible assets for the years ended December 31, 2024 and 2023 are as follows:

(i)

2024


(In millions of won)
	Intellectual property rights		Software		Member- ships		Development costs		Construction- in-progress		Technology		Goodwill		Total
Acquisition cost as of January 1, 2024	1,867,526		1,202,537		22,905		2,295,468		32,660		12,763		72,588		5,506,447
Accumulated amortization as of January 1, 2024	(1,029,320	)	(1,008,433	)	—		(1,509,575	)	—		(11,574	)	—		(3,558,902	)
Accumulated impairment loss as of January 1, 2024	(47,909	)	(12,596	)	(1,541	)	(144,432	)	—		(43	)	(57,995	)	(264,516	)

Book value as of January 1, 2024	790,297		181,508		21,364		641,461		32,660		1,146		14,593		1,683,029
Additions - internally generated	—		—		—		548,224		—		—		—		548,224
Additions - external purchases	49,818		—		—		—		87,226		—		—		137,044
Amortization (*1)	(156,574	)	(101,135	)	—		(546,377	)	—		(164	)	—		(804,250	)
Disposals	—		(187	)	(6,433	)	—		—		—		—		(6,620	)
Impairment loss (*2)	(1,931	)	(4,517	)	—		(66,028	)	—		—		—		(72,476	)
Others (*3)	—		105,230		—		—		(104,392	)	—		—		838

Book value as of December 31, 2024	681,610		180,899		14,931		577,280		15,494		982		14,593		1,485,789

Acquisition cost as of December 31, 2024	1,915,242		1,285,773		14,931		2,357,041		15,494		12,763		72,588		5,673,832

Accumulated amortization as of December 31, 2024	(1,185,734	)	(1,087,883	)	—		(1,715,408	)	—		(11,738	)	—		(4,000,763	)

Accumulated impairment loss as of December 31, 2024	(47,898	)	(16,991	)	—		(64,353	)	—		(43	)	(57,995	)	(187,280	)

(*1)	The Company has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses, and research and development expenses.

(*2)	The Company recognized an impairment loss amounting to 66,028 million for development projects which are not likely to generate probable future economic benefits.

(*3)	Others mainly represent the reclassification of construction-in-progress to intangible assets.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(ii)

2023


(In millions of won)
	Intellectual property rights			Software			Member- ships			Development costs			Construction- in-progress			Technology			Goodwill			Total
Acquisition cost as of January 1, 2023		1,757,282			1,160,702			26,619			2,016,477			28,169			12,763			72,588			5,074,600
Accumulated amortization as of January 1, 2023		(878,767	)		(975,411	)		—			(1,358,446	)		—			(11,411	)		—			(3,224,035	)
Accumulated impairment loss as of January 1, 2023		(48,598	)		(14,235	)		(1,701	)		(92,812	)		—			(43	)		(57,995	)		(215,384	)

Book value as of January 1, 2023		829,917			171,056			24,918			565,219			28,169			1,309			14,593			1,635,181
Additions - internally generated		—			—			—			493,608			—			—			—			493,608
Additions - external purchases		118,343			—			—			—			98,585			—			—			216,928
Amortization (*1)		(156,128	)		(85,528	)		—			(363,162	)		—			(163	)		—			(604,981	)
Disposals		(202	)		(396	)		(3,796	)		—			—			—			—			(4,394	)
Impairment loss (*2)		(1,633	)		(425	)		242			(52,775	)		—			—			—			(54,591	)
Others (*3)		—			96,801			—			(1,429	)		(94,094	)		—			—			1,278

Book value as of December 31, 2023		790,297			181,508			21,364			641,461			32,660			1,146			14,593			1,683,029

Acquisition cost as of December 31, 2023		1,867,526			1,202,537			22,905			2,295,468			32,660			12,763			72,588			5,506,447

Accumulated amortization as of December 31, 2023		(1,029,320	)		(1,008,433	)		—			(1,509,575	)		—			(11,574	)		—			(3,558,902	)

Accumulated impairment loss as of December 31, 2023		(47,909	)		(12,596	)		(1,541	)		(144,432	)		—			(43	)		(57,995	)		(264,516	)

(*1)	The Company has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses, and research and development expenses.

(*2)	The Company recognized an impairment loss amounting to 52,775 million for development projects which are not likely to generate probable future economic benefits.

(*3)	Others mainly represent the reclassification of construction-in-progress to intangible assets.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(b)

The book value and remaining amortization period of development costs and intellectual property rights as of December 31, 2024 and 2023 are as follows:

Development costs

(i)

As of December 31, 2024


(In millions of won and in years)
Classification	Category		Book Value		Remaining amortization period (*)
Development completed		TV		49,705		0.8
		IT		49,615		0.7
		Mobile and others		255,128		2.7

		Subtotal		354,448

Development in process		TV		14,802		—
		IT		37,737		—
		Mobile and others		170,293		—

		Subtotal		222,832

		Total		577,280

(*)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each product has a different remaining amortization period.

(ii)

As of December 31, 2023


(In millions of won and in years)
Classification	Category		Book Value		Remaining amortization period (*)
Development completed		TV		43,956		0.8
		IT		63,049		0.6
		Mobile and others		190,487		3.0

		Subtotal		297,492

Development in process		TV		46,368		—
		IT		175,023		—
		Mobile and others		122,578		—

		Subtotal		343,969

		Total		641,461

(*)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each product has a different remaining amortization period.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

Intellectual property rights

(i)

As of December 31, 2024


(In millions of won and in years)
Classification	Category			Book Value		Remaining amortization period (*1)
Patent		Direct additions			237,305		7.0
		Licenses agreement	(*2)		441,454		5.2

		Subtotal			678,759

Other					2,851		3.7

		Total			681,610

(*1)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each patent has a different remaining amortization period.

(*2)	The Company’s rights under contracts with the patent company.

(ii)

As of December 31, 2023


(In millions of won and in years)
Classification	Category			Book Value		Remaining amortization period (*1)
Patent		Direct additions			214,143		7.1
		Licenses agreement	(*2)		573,810		5.7

		Subtotal			787,953

Other					2,344		3.6

		Total			790,297

(*1)	Weighted average of the remaining useful life based on the book value at the end of the reporting period as each patent has a different remaining amortization period.

(*2)	The Company’s rights under contracts with the patent company.

(c)

The total amount of research and development expenditure recognized as an expense for the year ended December 31, 2024 is 1,427,125 million (2023: 1,367,382 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Intangible Assets, Continued

(d)

Details of impairment assessment on CGU

As of December 31, 2024, the Company’s cash-generating units consist of Display CGU, Display (Large OLED) CGU and Display (AD PO) CGU. As of December 31, 2024, the Company performed impairment assessment for Display CGU. All the goodwill balance as of December 31, 2024 is allocated to the Display CGU.

The recoverable amount of CGU is determined based on its value in use. Value in use is calculated using the estimated cash flow based on 5-year business plan approved by management. The estimated revenue and operating expenditures of the Company’s products used in the forecast was determined considering external sources and the Company’s historical experience. Management estimated the future cash flows based on its past performance and forecasts on market growth. The key assumptions used in the estimation of value in use for Display CGU include revenue and operating expenditures for the forecast period, and discount rate. Terminal growth rate and the discount rate used in the estimation of value in use are as follows.


Classification	Pre-tax discount rate(*)			Post-tax discount rate(*)			Terminal growth rate
Display CGU		9.3	%		7.6	%		1.0	%
Display CGU (Large OLED)		9.5	%		7.6	%		1.0	%
Display CGU (AP PO)		9.9	%		7.6	%		0.0	%

(*)

The discount rate was calculated using the weighted average cost of equity capital and debt and the beta of equity capital was calculated as the average of seven global listed companies in the same industry and the Company. Cost of debt was calculated using the yield rate of non-guaranteed corporate bond considering the Company’s credit rating and debt ratio was determined using the average of the debt ratios of the seven global listed companies in the same industry and the Company. The Company calculates the value in use of the CGU using post-tax cash flows and a post-tax discount rate, and the result is not significantly different from the value in use calculated using pre-tax cash flows and pre-tax discount rate.

As a result of impairment assessment for Display CGU, Display (Large OLED) CGU, and Display (ADPO) CGU, the recoverable amount exceeded its carrying amount. The value in use determined for this CGU is sensitive to the discount rate used in the discounted cash flow model.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investment Property

(a)

Changes in investment properties for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Beginning balance		32,995			28,269
Transfer from property, plant, and equipment		—			9,928
Depreciation		(5,084	)		(4,962	)
Others		—			(240	)

Ending balance		27,911			32,995

(b)

For the year ended December 31, 2024, rental income from investment property is 8,891 million (2023: 5,478 million) and rental cost is 5,468 million (2023: 5,429 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities

(a)

Details of financial liabilities as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024		December 31, 2023
Current
Short-term borrowings		2,454,295		1,428,213
Current portion of long-term borrowings		2,787,100		2,000,930
Current portion of bonds		611,882		369,716
Current portion of payment guarantee liabilities		6,092		6,780
Derivatives (*1)		3,762		26,193
Fair value hedging derivatives (*2)		—		7,392
Lease liabilities		3,539		11,598

Total		5,866,670		3,850,822

Non-current
Long-term borrowings		3,762,972		4,784,819
Bonds		525,957		1,118,427
Payment guarantee liabilities		9,678		13,833
Derivatives (*1)		7,006		37,333
Fair value hedging derivatives (*2)		—		28,660
Lease liabilities		2,995		2,802

Total		4,308,608		5,985,874

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest rate swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

(b)

Details of short-term borrowings as of December 31, 2024 and 2023 are as follows:

(In millions of won)

Lender

Description

Annual interest rate
as of
December 31, 2024 (%)

December 31,
2024

December 31,
2023

LG Display Singapore Pte. Ltd.

Working Capital

4.31

2,160,900

—

Standard Chartered Bank Korea Limited and others

Working Capital
and others

3.50~6.41

293,395

1,428,213

Total

2,454,295

1,428,213

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities, Continued

(c)

Details of Korean won denominated long-term borrowings as of December 31, 2024 and 2023 are as follows:


(In millions of won)
Lender	Description		Latest maturity date		Annual interest rate as of December 31, 2024 (%)		December 31, 2024			December 31, 2023
LG Electronics Inc.		Operating capital		March 2026		6.06		1,000,000			1,000,000
Korea Development Bank and others		Facility capital and others		March 2025 ~ March 2030		2.41~5.74		3,668,538			3,490,967
Less: current portion of long-term borrowings								(1,861,000	)		(776,000	)

Total								2,807,538			3,714,967

(d)

Details of foreign currency denominated long-term borrowings as of December 31, 2024 and 2023 are as follows:

(In millions of won and USD)

Lender

Description

Latest maturity
date

Annual interest rate
as of
December 31, 2024 (%)

December 31,
2024

December 31,
2023

KEB Hana Bank and others

Facility capital
and others

January 2025 ~

March 2029

5.76~7.06

1,881,534

2,294,782

Foreign currency equivalent of foreign currency borrowings

USD 1,280

USD 1,780

Less: current portion of long-term borrowings

(926,100

)

(1,224,930

)

Total

955,434

1,069,852

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

12.	Financial Liabilities, Continued

(e)

Details of bonds issued and outstanding as of December 31, 2024 and 2023 are as follows:


(In millions of won and USD)
	Maturity		Annual interest rate as of December 31, 2024 (%)		December 31, 2024			December 31, 2023
Korean won denominated bonds at amortized cost (*1)
Publicly issued bonds		February 2025 ~ February 2027		2.79~3.66		655,000			1,025,000
Privately issued bonds		January 2025 ~ January 2026		7.20~7.25		337,000			337,000
Less: discount on bonds						(705	)		(2,120	)
Less: current portion						(611,882	)		(369,716	)

Subtotal						379,413			990,164

Foreign currency denominated bonds at amortized cost (*2)
Privately issued bonds		April 2026		6.52		147,000			128,940
Foreign currency equivalent of foreign currency denominated bonds						USD 100			USD 100
Less: discount on bonds						(456)			(677)
Less: foreign currency equivalent of discount on bonds of foreign currency denominated bonds						USD (0)			USD (1)

Subtotal						146,544			128,263

Total						525,957			1,118,427

(*1)	Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2)	Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-employment Benefits

Defined benefit plans

The Company’s defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Company.

The defined benefit plans expose the Company to actuarial risks, such as the risk associated with expected periods of service, interest rate risk, market (investment) risk, and others.

(a)

Details of net defined benefit liabilities (defined benefit assets) recognized as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024			December 31, 2023
Present value of defined benefit obligations		1,436,251			1,482,976
Fair value of plan assets		(1,596,815	)		(1,890,188	)

		(160,564)			(407,212	)

(b)

Changes in the present value of the defined benefit obligations for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Defined benefit obligations at January 1		1,482,976			1,595,629
Current service cost		146,859			171,479
Interest cost		67,426			83,793
Remeasurements (before tax)		142,422			(65,505	)
Benefit payments		(397,457	)		(285,869	)
Net transfers from (to) related parties		(5,975	)		(16,551	)

Defined benefit obligations at December 31		1,436,251			1,482,976

Weighted average remaining maturity of defined benefit obligations as of December 31, 2024 is 9.98 years (December 31, 2023 : 12.20 years).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits, Continued

(c)

Changes in fair value of plan assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Fair value of plan assets at January 1		1,890,188			2,043,150
Interest income		86,280			107,735
Remeasurements (before tax)		(11,781	)		(870	)
Contributions by employer directly to plan assets		—			—
Benefit payments		(367,872	)		(259,609	)
Net transfers from (to) related parties		—			(218	)

Fair value of plan assets at December 31		1,596,815			1,890,188

The Company is considering the amount of recent contributions and the size of plan assets when estimating the contributions expected to be paid in the fiscal year commencing after the end of the reporting period.

(d)

Details of plan assets as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024		December 31, 2023
Time deposits in banks		1,596,815		1,890,188

As of December 31, 2024, the Company maintains the plan assets primarily with Shinhan Bank, KEB Hana Bank and others.

(e)

Details of expenses related to defined benefit plans recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Current service cost		146,859			171,479
Net interest cost		(18,854	)		(23,942	)

Total (*)		128,005			147,537

(*)	The total cost related to the defined benefit plans includes capitalized amounts of 9,885 million (2023: 15,085 million).

Details of expenses are recognized in the statements of comprehensive income (loss) as follows:


(In millions of won)	2024		2023
Cost of sales		89,052		99,141
Selling expenses		5,836		6,738
Administrative expenses		12,627		14,865
Research and development expenses		10,605		11,708

Total (*)		118,120		132,452

(*)	The total cost recognized in the comprehensive income statement related to the defined benefit plans excludes capitalized amounts of 9,885 million (2023: 15,085 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

13.	Post-Employment Benefits, Continued

(f) Details of remeasurements of net defined benefit liabilities (assets) included in other comprehensive income (loss) for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Balance at January 1		47,011			(2,806	)
Remeasurements
Actuarial profit or loss arising from:
Experience adjustment		(21,525	)		66,461
Demographic assumptions		7,487			(85	)
Financial assumptions		(128,384	)		(871	)
Return on plan assets		(11,781	)		(870	)

Subtotal		(154,203	)		64,635

Income tax		22,368			(14,818	)

Balance at December 31		(84,824	)		47,011

(g)

Details of principal actuarial assumptions as of December 31, 2024 and 2023 (expressed as weighted averages) are as follows:


	December 31, 2024			December 31, 2023
Expected rate of salary increase		4.0	%		4.0	%
Discount rate for defined benefit obligations		3.9	%		4.6	%

(h)

Reasonably possible changes to respective relevant actuarial assumptions would have affected the defined benefit obligations by the following amounts as of December 31, 2024:


(In millions of won)	Defined benefit obligations
	1% increase			1% decrease
Discount rate for defined benefit obligations		(127,037	)		146,746
Expected rate of salary increase		151,241			(132,836	)

ii)

Defined contribution plans

The amount recognized as an expense in relation to the defined contribution plan in 2024 is 19,057 million (2023: 8,534 million).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

14.	Provisions

Changes in provisions for the years ended December 31, 2024 and 2023 are as follows:

(i)

2024


(In millions of won)
	Litigation		Warranties (*)			Others		Total
Beginning balance		1,806		171,953			5,880		179,639
Additions		5,673		83,020			117		88,810
Usage		—		(103,579	)		—		(103,579	)

Ending balance		7,479		151,394			5,997		164,870

Current		7,479		90,486			5,997		103,962
Non-current		—		60,908			—		60,908

(*)	The Company provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

(ii)

2023


(In millions of won)
	Litigation		Warranties (*)			Others			Total
Beginning balance		1,680		248,137			8,432			258,249
Additions (reversal)		126		49,787			(2,552	)		47,361
Usage		—		(125,971	)		—			(125,971	)

Ending balance		1,806		171,953			5,880			179,639

Current		1,806		108,148			5,880			115,834
Non-current		—		63,805			—			63,805

(*)	The Company provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments

(a)

Legal Proceedings

Anti-trust litigations

The Company and other LCD panel manufacturers have been sued by individual claimants on allegations of violating EU competition laws. While the Company continues its vigorous defense of this pending proceeding. As of December 31, 2024, the Company cannot predict the final outcomes of the lawsuits that have been filed.

Others

The Company is involved in various lawsuits and disputes in addition to the pending proceeding described above. The Company cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.

(b)

Commitments

Factoring and securitization of accounts receivable

The Company has discount agreements with Korea Development Bank and other banks for accounts receivable related to export sales transactions with its subsidiary, up to USD 1,000 million (1,470,000 million). As of December 31, 2024, there is no amount of the discounted accounts receivable that have not yet matured in connection with these agreements. In relation to the above agreements, the financial institutions have the recourse for accounts receivable that are past due.

The Company has assignment agreements with MUFG Bank and other banks for accounts receivable related to domestic and export sales transactions, up to 551,250 million. As of December 31, 2024, the amount of the accounts receivable assigned that have not matured in connection with these agreements is 6,767 million. In relation to the above agreements, the financial institutions do not have the right of recourse for accounts receivable that are past due.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments, Continued

Loan commitment

As of December 31, 2024, the Company has entered into agreements with Hana Bank and other banks for credit lines and opening of letter of credits up to a limit of 2,645,500 million and with LG Display Singapore Pte. Ltd. for borrowing up to 2,352,000 million.

Payment guarantees

The Company provides payment guarantee to LG Display Vietnam Haiphong Co., Ltd. for the loan principal of USD 1,261 million (1,853,833 million).

In addition, the Company received payment guarantees of USD 900 million (1,323,000 million) from KB Kookmin Bank and other banks for advances received related to the long-term supply agreements.

The Company has received a payment guarantee of 2,021 million from Seoul Guarantee Insurance Co., Ltd. in relation to performance guarantees and others.

Patent and License agreements

As of December 31, 2024, the Company has patent license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent license agreements with Universal Display Corporation and others in relation to its OLED business. Also, as of December 31, 2024, the Company has a trademark license agreement with LG Corp. and license agreements with other companies for patents, trademarks and other intellectual property rights.

Long-term supply agreement

As of December 31, 2024, in connection with long-term supply agreements with customers, the Company recognized advances received amounting to USD 750 million (1,102,500 million). The advances received will be used to offset against accounts receivable arising from future product sales after a certain period of time from the date of receipt. In relation to this, the Company received payment guarantees of USD 900 million (1,323,000 million) from KB Kookmin Bank and other banks (see note 15(b) payment guarantees).

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Contingent Liabilities and Commitments, Continued

Collateral

Details of the collateral provided by the Company are as follows:


(In millions of won)
Collateral	Carrying amount		Maximum bond amount		Secured creditor	Collateral borrowings amount
Property plant and equipment and others		437,583		1,200,000	LG Electronics Inc.		1,000,000
Property plant and equipment and others		67,974		326,400	Korea Development Bank and others		136,000
Property plant and equipment and others (*)		237,283		780,000	Korea Development Bank and others		650,000

(*)	The carrying amount of collateral amounting to 237,283 million includes the collateral asset of 67,974 million for collateralized borrowings of 136,000 million from Korea Development Bank and other banks.

Commitments for asset acquisition

The amount committed to acquire property, plant, equipment and intangible assets not recognized on the financial statements as of December 31, 2024 is 347,344 million.

16.	Share Capital and Share Premium

The total number of shares to be issued by the Company is 500,000,000 shares, the number of shares issued is 500,000,000 shares (December 31, 2023: 357,815,700 shares), and the par value per share is 5,000.

The Company conducted a paid-in capital increase as below based on the resolution of the board of directors on December 18, 2023, and the newly issued shares were listed on the Korea Exchange (KRX) on March 26, 2024.

With the new shares of common stock, the share capital increased by 710,921 million to 2,500,000 million.


Classification		Description
Purpose		Funding for capital and operating expenditures and repayment of debts
Type of shares issued		Common stock
Number of shares issued		142,184,300 shares
The amount per shares		9,090

The capital surplus consists of share premium and due to the capital increase during 2024, the share premium increased by 569,893 million to 2,821,006 million.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

17.	Retained earnings (Accumulated deficit)

(a)

Retained earnings (accumulated deficit) as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024			December 31, 2023
Legal reserve		235,416			235,416
Other reserve		68,251			68,251
Defined benefit plan actuarial income (loss)		(84,824	)		47,011
Unappropriated retained earnings (accumulated deficit)		(1,744,051	)		1,290,685

Total		(1,525,208	)		1,641,363

(b)

For the years ended December 31, 2024 and 2023, details of the Company’s appropriations of retained earnings (accumulated deficit) are as follows:


(In millions of won, except for cash dividend per common stock)
	2024			2023
Retained earnings (accumulated deficit) before appropriations
Unappropriated retained earnings (accumulated deficit) carried over from prior year		1,290,685			3,009,386
Loss for the year		(3,034,736	)		(1,718,701	)

		(1,744,051	)		1,290,685
Unappropriated retained earnings (accumulated deficit) carried forward to the following year		(1,744,051	)		1,290,685

Expected date of appropriation for the year ended December 31, 2024 is March 20, 2025 and the date of appropriation for the year ended December 31, 2023 is March 22, 2024.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

18.

Revenue

Details of revenue for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Sales of goods		25,083,924		19,761,198
Royalties(*)		59,327		13,337
Others(*)		35,437		36,480

Total		25,178,688		19,811,015

(*)

It includes license revenue and rental income recognized over the period.

For the year ended December 31, 20214, the revenue recognized by satisfying performance obligation for the amount received from the customer in prior reporting periods is 587,742 million.

19.	The Nature of Expenses

The classification of expenses by nature for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Changes in inventories		(5,719	)		143,635
Purchases of raw materials and others		9,987,490			8,908,275
Depreciation and amortization		3,087,047			2,328,219
Outsourcing		8,094,665			6,797,775
Labor		2,726,704			2,508,950
Supplies and others		686,731			689,363
Utility		1,068,096			885,278
Fees and commissions		388,732			399,085
Shipping		61,313			62,481
Advertising		66,988			76,353
Warranty		83,020			49,787
Travel		45,214			57,654
Taxes and dues		74,068			66,698
Others		614,965			721,583

Total(*)		26,979,314			23,695,136

(*)

Total expenses consist of cost of sales, selling, administrative, research and development expenses.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

20.	Selling and Administrative Expenses

Details of selling and administrative expenses for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Salaries		434,233		247,797
Expenses related to defined benefit plans		20,969		22,834
Other employee benefits		48,707		51,689
Shipping		22,453		20,569
Fees and commissions		162,434		160,979
Depreciation and amortization		148,712		152,460
Taxes and dues		4,529		5,973
Advertising		66,988		76,353
Warranty		83,020		49,787
Insurance		9,424		9,451
Travel		8,160		12,910
Training		7,612		8,416
Others		58,734		61,631

Total		1,075,975		880,849

21.	Other Non-operating Income and Other Non-operating Expenses

(a)

Details of other non-operating income for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Foreign currency gain		1,607,940		941,200
Gain on disposal of property, plant and equipment		51,093		33,842
Gain on disposal of intangible assets		25		1,989
Reversal of impairment loss on property, plant and equipment		4,314		—
Rental income		1,811		1,886
Others		37,323		16,874

Total		1,702,506		995,791

(b)

Details of other non-operating expenses for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Foreign currency loss		2,200,195		1,104,656
Loss on disposal of property, plant and equipment		75,672		102,297
Impairment loss on property, plant and equipment		69,725		8,521
Impairment loss on intangible assets		72,490		54,833
Others		21,907		7,724

Total		2,439,989		1,278,031

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

22.	Finance Income and Finance Costs

Details of finance income and costs recognized in profit or loss for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Finance income
Interest income		20,440		14,922
Dividend income		227,418		1,895,692
Foreign currency gain		30,205		73,362
Gain on transaction of derivatives		274,173		178,610
Gain on valuation of derivatives		145,078		239,973
Gain on valuation of financial assets at fair value through profit or loss		—		1,626
Others		7,456		7,412

Total		704,770		2,411,597


Finance costs
Interest expense		665,051		434,455
Foreign currency loss		565,829		103,343
Loss on valuation of financial assets at fair value through profit or loss		6,567		8,102
Loss on valuation of derivatives		5,771		316,467
Others		10,935		14,983

Total		1,254,153		877,350

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Income Tax Benefit (Expense)

(a)

Details of income tax benefit (expense) for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Current tax benefit (expense)
Current year		(12,368	)		(101,387	)
Adjustment for prior years		5			26,041

Subtotal		(12,363	)		(75,346	)

Deferred tax benefit
Changes in temporary differences		65,118			988,759

Income tax benefit		52,755			913,413

(b)

Details of income tax benefit (expense) recognized in equity for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024								2023
	Before tax			Income tax effect		Net of tax			Before tax		Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)		(154,203	)		22,368		(131,835	)		64,635		(14,818	)		49,817

Total		(154,203	)		22,368		(131,835	)		64,635		(14,818	)		49,817

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Income Tax Benefit (Expense), Continued

(c)

Reconciliation of the effective tax rate for the years ended December 31, 2024 and 2023 is as follows:


(In millions of won)
	2024			2023
Loss for the year		(3,034,736	)		(1,718,701	)
Income tax benefit		52,755			913,413

Loss before income tax		(3,087,491	)		(2,632,114	)


Income tax benefit using the Company’s statutory tax rate		707,653			603,281
Income not subject to tax		61,846			409,409
Change in unrecognized deferred tax assets (*1)		(703,714	)		42,183
Adjustment for prior years		18,474			(31,218	)
Effect on change in tax rate		(30,151	)		(10,504	)
Others		(1,353	)		(99,738	)

Total		52,755			913,413

Effective tax rate		(*2)			(*2)

(*1)

The effect of changes in deferred tax assets related to tax loss carryforwards and tax credit carryforwards that are not realizable based on the estimates of future taxable profit.

(*2)

Actual effective tax rate is not calculated due to loss before income tax for the years ended December 31, 2024 and 2023.

(d)

Global Minimum Tax

Under Pillar Two legislation, the Company is liable to pay a top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Company has assessed its impact of the Pillar Two legislation on its financial statements. As a result of the assessment, the Company has no current tax expenses related to Pillar Two legislation for the year ended December 31, 2024.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

24.	Deferred Tax Assets and Liabilities

(a)

Details of the recovery and settlement timings for deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024		2023
Deferred tax assets
Deferred tax asset to be recovered after more than 12 months		3,511,525		3,590,688
Deferred tax asset to be recovered within 12 months		336,541		259,864

Total deferred tax assets		3,848,066		3,850,552

Deferred tax liabilities
Deferred tax liability to be settled after more than 12 months		300,766		385,432
Deferred tax liability to be settled within 12 months		72,310		77,616

Total deferred tax liabilities		373,076		463,048

Deferred tax assets after offsetting		3,474,990		3,387,504

(b)

Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	January 1, 2023			Profit or loss for 2023			Other comprehensive loss for 2023			December 31, 2023			Profit or loss for 2024			Other comprehensive income for 2024		December 31, 2024
Other accounts receivable		(2,009	)		1,948			—			(61	)		(4,406	)		—		(4,467	)
Inventories		35,562			(6,955	)		—			28,607			3,416			—		32,023
Defined benefit assets		(95,850	)		20,915			(14,818	)		(89,753	)		53,348			22,368		(14,037	)
Accrued expenses		106,398			(12,887	)		—			93,511			8,377			—		101,888
Property, plant and equipment and intangible assets		442,528			(42,216	)		—			400,332			(22,941	)		—		377,391
Provisions		57,210			(17,624	)		—			39,586			(4,666	)		—		34,920
Subsidiaries and associates		6,541			71,653			—			78,194			2,339			—		80,533
Other temporary differences		(8,668	)		20,201			—			11,533			1,708			—		13,241
Tax loss carryforwards		1,700,860			976,480			—			2,677,340			31,507			—		2,708,847
Tax credit carryforwards		170,971			(22,756	)		—			148,215			(3,564	)		—		144,651

Deferred tax assets (liabilities)		2,413,563			988,759			(14,818	)		3,387,504			65,118			22,368		3,474,990

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

24.	Deferred Tax Assets and Liabilities, Continued

(c) Details of deductible (taxable) temporary difference, tax credit carryforwards and tax credit carryforwards unrecognized as deferred tax assets (liabilities) as of December 31, 2024, are as follows:


(In millions of won)
	Amount			Reason
Investments with its subsidiary		(249,712	)	Unlikely to reverse (dispose of) in the foreseeable future
Tax credit carryforwards (*1)		949,968		Uncertainty of future taxable profit
Tax loss carryforwards (*2)		2,946,346		Uncertainty of future taxable profit

(*1)

Unrecognized tax credit carryforwards due to the low probability of realization in the future as of December 31, 2024, will be expired from 2025.

(*2)

Unrecognized tax loss carryforwards due to the low probability of realization in the future as of December 31, 2024, will be expired from 2029.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

25.	Loss per Share

(a)

Basic loss per share for the years ended December 31, 2024 and 2023 are as follows:


(In won and No. of shares)	2024			2023
Loss for the year		(3,034,736,546,955	)		(1,718,701,175,934	)
Weighted-average number of common stocks outstanding		471,252,355			380,884,673

Basic loss per share		(6,440	)		(4,512	)

(b)

Diluted loss per share is not different from basic loss per share as there are no dilution effects of potential common stocks.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management

The Company is exposed to credit risk, liquidity risk and market risk. The Company identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below an acceptable level.

(a)

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i)

Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, JPY, etc.

The Company adopts policies to ensure that its net exposure is kept to a manageable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. In respect of monetary assets and liabilities denominated in foreign currencies, the Company manages currency risk through continuously managing the position of foreign currencies, measuring the currency risk and, if necessary, using derivatives such as currency forwards, currency swap and others.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

Exposure to currency risk

The Company’s exposure to foreign currency risk for major foreign currencies based on notional amounts as of December 31, 2024 and 2023 is as follows:


(In millions)	Net exposure
	December 31, 2024			December 31, 2023
USD		(4,754	)		(3,898	)
JPY		(13,282	)		(16,840	)

Forward exchange contracts, USD 750 million (2023: USD 1,200 million) were entered into to manage currency risk with respect to advances received in foreign currency.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

Average exchange rates applied for the years ended December 31, 2024 and 2023 and the exchange rates as of December 31, 2024 and 2023 are as follows:


(In won)
	Average rate				Reporting date spot rate
	2024		2023		December 31, 2024		December 31, 2023
USD		1,363.09		1,306.12		1,470.00		1,289.40
JPY		9.01		9.32		9.36		9.13

ii)

Sensitivity analysis

A weaker won, as indicated below, against the following currencies which comprise the Company’s assets or liabilities denominated in a foreign currency as of December 31, 2024 and 2023, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considers to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:


(In millions of won)	December 31, 2024						December 31, 2023
	Equity			Profit or loss			Equity			Profit or loss
USD (5 percent weakening)		(269,379	)		(269,379	)		(193,758	)		(193,758	)
JPY (5 percent weakening)		(4,794	)		(4,794	)		(5,925	)		(5,925	)

iii)

Fair value hedging derivatives

In relation to advances received that are dominated in foreign currency, the Company uses derivative instruments to hedge change of fair value due to foreign currency exchange rate changes.

Hedging instrument

Contractor

Contract
amount
(In millions)

Contract
exchange
rate

Maturity
date

Change in value
(In millions of
won)

Ineffective
portion of risk
hedging
(In millions of
won)

Forward

Standard Chartered Bank Korea Limited and others

USD 750

1,289.11 ~
1,310.08

2025.01 ~
2026.01

155,149

19,699

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(ii)

Interest rate risk

Interest rate risk arises principally from the Company’s variable interest-bearing bonds and borrowings. The Company establishes and applies its policy to reduce uncertainty arising from fluctuations in interest rates and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and establishing plan for countermeasures. Meanwhile, the Company entered into cross currency interest rate swap contracts amounting to USD 980 million (1,440,600 million) and interest rate swap contracts amounting to 915,000 million in notional amount to manage interest rate risk with respect to variable interest bearing borrowings.

Profile

The interest rate profile of the Company’s interest-bearing financial instruments as of December 31, 2024 and 2023 is as follows:


(In millions of won)	December 31, 2024			December 31, 2023
Fixed rate instruments
Financial assets		238,477			354,502
Financial liabilities		(4,076,162	)		(6,156,590	)

Total		(3,837,685)			(5,802,088	)

Variable rate instruments
Financial liabilities		(6,066,044)			(3,545,515	)

ii)

Equity and profit or loss sensitivity analysis for variable rate instruments

As of December 31, 2024 and 2023, a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for the respective following 12 month periods. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.


(In millions of won)	Equity				Profit or loss
	1%p increase		1%p decrease		1%p increase			1%p decrease
December 31, 2024
Variable rate instruments (*)		(46,763)		46,763		(46,763	)		46,763
December 31, 2023
Variable rate instruments (*)		(27,329)		27,329		(27,329	)		27,329

(*)

Included financial instruments for which interest rate swap contracts, not designated as hedging instruments, were entered into.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(b)

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The Company’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each customer. However, management believes that the default risk of the country in which each customer operates, do not have a significant influence on credit risk since the majority of the customers are global electronic appliance manufacturers operating in global markets.

The Company establishes credit limits for each customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.

In relation to the impairment of financial assets subsequent to initial recognition, the Company recognizes the changes in expected credit loss (“ECL”) in profit or loss at each reporting date.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024		December 31, 2023
Financial assets at amortized cost
Cash equivalents		238,477		334,502
Deposits in banks		11		20,011
Trade accounts and notes receivable, net		4,964,594		3,077,901
Non-trade receivables		206,313		108,769
Accrued income		19,286		242
Deposits		8,964		8,538
Loans		37,143		59,884

Subtotal		5,474,788		3,609,847

Financial assets at fair value through profit or loss
Convertible securities		—		1,838
Derivatives		256,251		169,703

Subtotal		256,251		171,541

Financial assets effective for fair value hedging
Derivatives		119,098		—

Total		5,850,137		3,781,388

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

In addition to the financial assets above, as of December 31, 2024, the Company provides payment guarantees to LG Display Vietnam Haiphong, Co., Ltd. in connection with the principal amount of credit facilities amounting to USD 1,261 million (1,853,833 million) (see note 15).

Trade accounts and notes receivable are insured in order for the Company to manage credit risk if they do not meet the Company’s internal credit ratings. Uninsured trade accounts and notes receivable are managed by continuous monitoring of internal credit rating standards established by the Company and seeking insurance coverage, if necessary.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

(c)

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. In addition, the Company maintains a line of credit with various banks.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of December 31, 2024 and 2023.

(i)

As of December 31, 2024


(In millions of won)			Contractual cash flows in
	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings		9,004,367		9,610,754			4,350,636			1,135,893			1,751,037			2,347,875			25,313
Bonds		1,137,839		1,185,892			631,539			11,638			416,573			126,142			—
Trade accounts and notes payable (*1)		12,011,544		12,011,544			11,740,183			271,361			—			—			—
Other accounts payable (*1)		1,438,724		1,441,594			1,112,327			329,267			—			—			—
Long-term other accounts payable		279,774		323,400			—			—			69,090			192,570			61,740
Payment guarantee (*2)		15,770		1,984,500			1,984,500			—			—			—			—
Security deposits received		160,710		189,210			—			808			6,837			181,565			—
Lease liabilities		6,534		6,968			1,944			1,831			1,797			1,233			163
Derivative financial liabilities
Derivatives		10,768		11,184			930			3,447			4,495			2,312			—
Cash outflow		—		75,016			21,402			20,467			22,342			10,805			—
Cash inflow		—		(63,832	)		(20,472	)		(17,020	)		(17,847	)		(8,493	)		—

Total		24,066,030		26,765,046			19,822,059			1,754,245			2,249,829			2,851,697			87,216

(*1)

As of December 31, 2024, it includes 1,187,450 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Company presented the payable to credit card companies as trade account notes payables and other accounts payable and disclosed related cash flows as operating and investing activities since the Company is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

(*2)	Contractual cash flows of payment guarantee represents the maximum amount to the earliest period that the Company could be required to pay the guarantee amount.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(ii)

As of December 31, 2023


(In millions of won)			Contractual cash flows in
	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings		8,213,962		8,868,714			2,482,724			1,313,880			3,351,277			1,720,833			—
Bonds		1,488,143		1,597,741			111,169			319,011			642,996			524,565			—
Trade accounts and notes payable		8,993,964		8,993,964			8,788,397			205,567			—			—			—
Other accounts payable (*1)		2,334,289		2,336,817			2,117,744			219,073			—			—			—
Long-term other accounts payable		343,845		398,451			—			—			114,783			175,358			108,310
Payment guarantee (*2)		20,613		2,182,973			2,182,973			—			—			—			—
Security deposits received		153,316		190,275			3,120			4,550			1,040			181,565			—
Lease liabilities		14,400		15,014			6,145			5,953			1,838			916			162
Derivative financial liabilities
Derivatives		63,526		45,705			18,781			3,988			12,474			10,462			—
Cash outflow		—		1,385,858			657,325			47,527			510,676			170,330			—
Cash inflow		—		(1,340,153	)		(638,544	)		(43,539	)		(498,202	)		(159,868	)		—
Fair value hedging derivatives		36,052		36,052			1,514			5,878			20,282			8,378			—

Total		21,662,110		24,665,706			15,712,567			2,077,900			4,144,690			2,622,077			108,472

(*1)

As of December 31, 2023, it includes 1,092,180 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Company presented the payable to credit card companies as other accounts payable and disclosed related cash flows as operating and investing activities since the Company is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

(*2)	Contractual cash flows of payment guarantee represents the maximum amount to the earliest period that the Company could be required to pay the guarantee amount.

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(d)

Capital management

Management’s policy is to maintain a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure. Management also monitors the return on capital as well as the level of dividends to ordinary shareholders. The Company is also responsible for complying with certain financial ratios as part of capital maintenance conditions imposed externally. To fulfill this responsibility, the Company regularly monitors these financial ratios and takes proactive measures when necessary.


(In millions of won)
	December 31, 2024			December 31, 2023
Total liabilities		26,003,253			24,050,857
Total equity		3,795,798			5,681,555
Cash and deposits in banks (*1)		238,477			354,502
Borrowings (including bonds)		10,142,206			9,702,105
Total liabilities to equity ratio		685	%		423	%
Net borrowings to equity ratio (*2)		261	%		165	%

(*1)

Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks.

(*2)

Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity.

(e)

Determination of fair value

(i)

Measurement of fair value

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(ii)

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the statements of financial position as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	December 31, 2024				December 31, 2023
	Carrying amounts		Fair values		Carrying amounts		Fair values
Financial assets at amortized cost
Cash and cash equivalents		238,477		(*1)		334,502		(*1)
Deposits in banks		11		(*1)		20,011		(*1)
Trade accounts and notes receivable		4,964,594		(*1)		3,077,901		(*1)
Non-trade receivables		206,313		(*1)		108,769		(*1)
Accrued income		19,286		(*1)		242		(*1)
Deposits		8,964		(*1)		8,538		(*1)
Loans		37,143		(*1)		59,884		(*1)
Financial assets at fair value through profit or loss
Equity securities		22,138		22,138		3,967		3,967
Convertible securities		—		—		1,838		1,838
Derivatives		256,251		256,251		169,703		169,703
Financial assets effective for fair value hedging
Derivatives		119,098		119,098		—		—
Financial liabilities at amortized cost
Borrowings		9,004,367		9,074,818		8,213,962		8,248,441
Bonds		1,137,839		1,142,725		1,488,143		1,479,725
Trade accounts and notes payable		12,011,544		(*1)		8,993,964		(*1)
Other accounts payable		1,718,498		(*1)		2,678,134		(*1)
Payment guarantee liabilities		15,770		(*1)		20,613		(*1)
Security deposits received		160,710		(*1)		153,316		(*1)
Financial liabilities at fair value through profit or loss
Derivatives		10,768		10,768		63,526		63,526
Financial liabilities effective for fair value hedging
Derivatives		—		—		36,052		36,052
Other financial liabilities
Lease liabilities		6,534		(*2)		14,400		(*2)

(*1)	Excluded from disclosures as the carrying amount approximates fair value.

(*2)	Excluded from the fair value disclosures in accordance with Korean IFRS 1107 ‘Financial Instruments: Disclosures’.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(iii)

Fair values of financial assets and liabilities

Fair value hierarchy

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

•

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

•

Level 3: inputs for the asset or liability that are not based on observable market data

ii)

Valuation techniques and inputs for Assets and Liabilities measured by the fair value hierarchy

Fair value hierarchy classifications of the financial instruments that are measured at fair value as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024						Total
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities		18,958		—		3,180		22,138
Derivatives		—		256,251		—		256,251
Financial assets effective for fair value hedging
Derivatives		—		119,098		—		119,098
Financial liabilities at fair value through profit or loss
Derivatives		—		10,768		—		10,768


(In millions of won)	December 31, 2023						Total
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities		—		—		3,967		3,967
Convertible securities		—		—		1,838		1,838
Derivatives		—		169,703		—		169,703
Financial liabilities at fair value through profit or loss
Derivatives		—		63,526		—		63,526
Financial liabilities effective for fair value hedging
Derivatives		—		36,052		—		36,052

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

The valuation techniques and inputs for assets and liabilities measured at fair value that are classified as Level 2 and Level 3 within the fair value hierarchy as of December 31, 2024 and 2023 are as follows:


(In millions of won)	December 31, 2024				December 31, 2023				Valuation technique		Input
Classification	Level 2		Level 3		Level 2		Level 3		Valuation technique		Input
Financial assets at fair value through profit or loss
Equity securities		—		3,180		—		3,967		Net asset value method and Comparable company analysis		Price to book value ratio
Convertible securities		—		—		—		1,838		Blended discount model and binominal option pricing model		Discount rate, stock price and volatility
Derivatives		256,251		—		169,703		—		Discounted cash flow		Discount rate and Exchange rate
Financial assets effective for fair value hedging
Derivatives		119,098		—		—		—		Discounted cash flow		Discount rate and Exchange rate
Financial liabilities at fair value through profit or loss
Derivatives		10,768		—		63,526		—		Discounted cash flow		Discount rate and Exchange rate
Financial liabilities effective for fair value hedging
Derivatives		—		—		36,052		—		Discounted cash flow		Discount rate and Exchange rate

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

iii)

Financial instruments not measured at fair value but for which the fair value is disclosed

Fair value hierarchy classifications, valuation techniques and inputs for fair value measurements of the financial instruments not measured at fair value but for which the fair value is disclosed as of December 31, 2024 and 2023 are as follows:

(In millions of won)

December 31, 2024

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

9,074,818

Discounted
cash flow

Discount
rate

Bonds

—

1,142,725

Discounted
cash flow

Discount
rate

(In millions of won)

December 31, 2023

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

8,248,441

Discounted
cash flow

Discount
rate

Bonds

—

1,479,725

Discounted
cash flow

Discount
rate

iv)

The interest rates applied for determination of the above fair value as of December 31, 2024 and 2023 are as follows:


	December 31, 2024			December 31, 2023
Borrowings, bonds and others		3.70%~3.96	%		4.60%~5.02	%


(In millions of won)
Classification	January 1, 2024		Valuation			Disposal			December 31, 2024
Equity securities		3,967		(787	)		—			3,180
Convertible securities		1,838		—			(1,838	)		—


(In millions of won)
Classification	January 1, 2023		Valuation			December 31, 2023
Equity securities		10,484		(6,517	)		3,967
Convertible securities		1,797		41			1,838

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Financial Risk Management, Continued

(f)

Net gains and losses by category of financial instruments

The net gains and losses by category of financial instruments as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024
	Financial assets at amortized cost			Financial liabilities at amortized cost			Financial assets at FVTPL			Derivatives		Others			Total
Interest income		20,440			—			—			—		—			20,440
Interest expense		—			(664,365	)		—			—		(686	)		(665,051	)
Foreign currency differences		972,838			(2,155,951	)		—			190,906		—			(992,207	)
Bad debt expense		(348	)		—			—			—		—			(348	)
Gain or loss on disposal		(270	)		—			(98	)		—		—			(368	)
Gain or loss on repayment		—			(678	)		—			—		—			(678	)
Gain or loss on valuation		—			—			(6,567	)		—		—			(6,567	)
Gain or loss on derivatives		—			—			—			413,480		—			413,480

Total		992,660			(2,820,994	)		(6,665	)		604,386		(686	)		(1,231,299	)


(In millions of won)
	2023
	Financial assets at amortized cost			Financial liabilities at amortized cost			Financial assets at FVTPL			Financial assets at FVOCI			Derivatives			Others			Total
Interest income		14,922			—			—			—			—			—			14,922
Interest expense		—			(433,974	)		—			—			—			(481	)		(434,455	)
Foreign currency differences		(30,856	)		(160,240	)		—			—			(36,052	)		—			(227,148	)
Reversal of bad debt expense		3			—			—			—			—			—			3
Gain or loss on disposal		(899	)		—			—			(329	)		—			—			(1,228	)
Gain or loss on repayment		—			(167	)		—			—			—			—			(167	)
Gain or loss on valuation		—			—			(6,476	)		—			—			—			(6,476	)
Gain or loss on derivatives		—			—			—			—			102,116			—			102,116

		(16,830	)		(594,381	)		(6,476	)		(329	)		66,064			(481	)		(552,433	)

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

27.

Leases

(a)

Leases as lessee

The Company leases buildings, vehicles, machinery and equipment and others. Information about leases for which the Company is a lessee is presented below.

(i)

Right-of-use assets

Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property, plant and equipment (see Note 9(a)).

Changes in right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024
	Buildings			Land			Machinery and equipment			Vehicles			Others			Total
Beginning balance		8,507			—			533			4,763			195			13,998
Additions		360			1			2,548			3,071			1			5,981
Depreciation		(8,855	)		(1	)		(1,552	)		(3,275	)		(77	)		(13,760	)

Ending balance		12			—			1,529			4,559			119			6,219


(In millions of won)
	2023
	Buildings			Land			Machinery and equipment			Vehicles			Others			Total
Beginning balance		189			23			365			4,787			96			5,460
Additions		16,920			—			882			3,622			144			21,568
Depreciation		(8,602	)		(23	)		(714	)		(3,646	)		(45	)		(13,030	)

Ending balance		8,507			—			533			4,763			195			13,998

(ii)

Amounts recognized in profit or loss not from right-of-use assets for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Interest on lease liabilities		(686	)		(481	)
Expenses relating to short-term leases		(19	)		(158	)
Expenses relating to leases of low-value assets that are not short-term leases		(474	)		(915	)

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

27.	Leases, Continued

(iii)

Changes in lease liabilities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024			2023
Beginning balance		14,400			5,952
Additions		5,981			20,846
Interest expense		686			481
Repayment of liabilities		(14,533	)		(12,879	)

Ending balance		6,534			14,400

(iv)

Total cash outflows from leases for the year ended December 31, 2024 amounted to 15,026 million (2023: 14,433 million).

(b)

Leases as lessor

The Company leases out investment property and a portion of property, plant and equipment as operating leases (see Notes 9 and 11).

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash flow information

(a)

Details of cash flows generated from operations for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Loss for the period		(3,034,736	)		(1,718,701	)

Adjustments for:
Income tax benefit (Note 23)		(52,755	)		(913,413	)
Depreciation and amortization (Note 19)		3,087,047			2,328,219
Gain on foreign currency translation		(503,939	)		(258,871	)
Loss on foreign currency translation		934,645			170,190
Expenses related to defined benefit plans (Note 13)		128,005			147,537
Gain on disposal of property, plant and equipment		(51,093	)		(33,842	)
Loss on disposal of property, plant and equipment		75,672			102,297
Impairment loss on property, plant and equipment		69,725			8,521
Reversal of impairment loss on property, plant and equipment		(4,314	)		—
Gain on disposal of intangible assets		(25	)		(1,989	)
Loss on disposal of intangible assets		388			55
Impairment loss on intangible assets		72,490			54,833
Reversal of impairment loss on intangible assets		(14	)		(242	)
Expense on increase of provisions		88,471			49,787
Finance income		(676,878	)		(2,371,466	)
Finance costs		1,232,849			861,067
Others		(65,115	)		(6,659	)

Changes in:
Trade accounts and notes receivable		(2,157,869	)		(713,607	)
Other accounts receivable		(131,567	)		46,739
Inventories		(5,720	)		143,635
Other current assets		11,571			97,879
Other non-current assets		2,414			(189	)
Proceeds from settlement of derivatives		35,757			—
Trade accounts and notes payable		2,310,209			811,210
Other accounts payable		(518,888	)		(80,411	)
Accrued expenses		23,846			(105,247	)
Provisions		(103,462	)		(128,523	)
Advances received		(6,195	)		(370	)
Other current liabilities		(2,860	)		(29,774	)
Defined benefit liabilities, net		(35,559	)		(42,593	)
Long-term advances received		—			1,580,222
Other non-current liabilities		2,237			33,891

Cash generated from operations		724,337			30,185

268

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash flow information, Continued

(b)

Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
						Non-cash transactions
	January 1, 2024		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Others			December 31, 2024
Short-term borrowings		1,428,213		756,372			269,710		—		—			2,454,295
Payment guarantee liabilities		20,613		7,427			—		—		(12,270	)		15,770
Long-term borrowings		6,785,749		(507,411	)		267,531		4,203		—			6,550,072
Bonds		1,488,143		(370,000	)		18,004		1,692		—			1,137,839
Lease liabilities		14,400		(13,847	)		—		—		5,981			6,534

Total		9,737,118		(127,459	)		555,245		5,895		(6,289	)		10,164,510


(In millions of won)
						Non-cash transactions
	January 1, 2023		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Others			December 31, 2023
Short-term borrowings		1,952,289		(528,095	)		4,019		—		—			1,428,213
Payment guarantee liabilities		19,241		7,195			—		—		(5,823	)		20,613
Long-term borrowings		5,660,105		1,061,704			57,803		3,271		2,866			6,785,749
Bonds		1,448,746		35,276			2,237		1,717		167			1,488,143
Lease liabilities		5,952		(12,879	)		—		—		21,327			14,400

Total		9,086,333		563,201			64,059		4,988		18,537			9,737,118

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

28.	Cash flow information, Continued

(c)

Details of significant non-cash transactions for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)
	2024			2023
Changes in other accounts payable arising from the purchase of property, plant and equipment		(392,850	)		(459,089	)
Changes in other accounts payable arising from the purchase of intangible assets		(119,521	)		(25,577	)
Recognition of right-of-use assets and lease liabilities		5,981			21,568
Reclassification of the current portion of borrowing/bonds		(3,827,835	)		(2,497,306	)

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others

(a)

Related parties

Details of related parties as of December 31, 2024 are as follows:


Classification		Description
Subsidiaries(*)		LG Display America, Inc. and others
Associates(*)		Paju Electric Glass Co., Ltd. and others
Entity that has significant influence over the Company		LG Electronics Inc.
Subsidiaries of the entity that has significant influence over the Company		Subsidiaries of LG Electronics Inc.

(*)	Details of subsidiaries and associates are described in Note 8.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(b)

Details of major transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)	2024
	Sales and others				Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*2)
Subsidiaries
LG Display America, Inc.		15,192,477		—		—		688
LG Display Japan Co., Ltd.		1,032,290		—		—		668
LG Display Germany GmbH		1,542,058		—		—		22,583
LG Display Taiwan Co., Ltd.		2,573,337		—		—		3,190
LG Display Nanjing Co., Ltd.		84,928		—		1,648,818		11,779
LG Display Shanghai Co., Ltd.		608,564		—		—		64
LG Display Guangzhou Co., Ltd.		42,801		—		1,272,010		15,049
LG Display Shenzhen Co., Ltd.		568,415		—		—		—
LG Display Yantai Co., Ltd.		1		—		310,113		1,168
LG Display (China) Co., Ltd.		2,922		219,667		1,329,284		2,204
LG Display Singapore Pte. Ltd.		1,442,009		—		—		78,864
L&T Display Technology (Fujian) Limited		127,142		7,081		2		68
Nanumnuri Co., Ltd.		272		470		—		24,144
LG Display Guangzhou Trading Co., Ltd.		386,330		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		147,453		—		3,560,274		38,301
Suzhou Lehui Display Co., Ltd.		80,985		—		1,861		3
LG Display High-Tech (China) Co., Ltd.		1,078		—		2,515,439		4,130

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2024
	Sales and Others				Purchase and others
	Sales and Others		Dividend income		Purchase of raw material and others		Others (*2)
Associates
WooRee E&L Co., Ltd. (*1)		—		—		355		32
AVATEC Co., Ltd. (*1)		—		200		52,983		2,947
Paju Electric Glass Co., Ltd.		—		—		237,002		8,428
YAS Co., Ltd. (*1)		—		—		5,266		4,945
Material Science Co., Ltd.		—		—		3,579		1,512
Entity that has significant influence over the Company
LG Electronics Inc.		326,387		—		11,662		205,894

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2024
	Sales and others				Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*2)
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.		52,736		—		—		275
LG Electronics Vietnam Haiphong Co., Ltd.		202,561		—		—		5,859
LG Electronics Reynosa S.A. DE C.V.		17,158		—		—		746
LG Electronics do Brasil Ltda.		17,672		—		—		248
LG Electronics RUS, LLC		—		—		—		4,005
LG Electronics Egypt S.A.E		24,454		—		—		32
LG Innotek Co., Ltd.		10,356		—		3		72,123
P.T. LG Electronics Indonesia		25,729		—		—		1,254
Others		12		—		—		19,999

Total		24,510,127		227,418		10,948,651		531,202

(*1)	For the year ended December 31, 2024, WooRee E&L Co., Ltd., AVATEC Co., Ltd. and YAS Co., Ltd. were excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.

(*2)	Others include the amount of the acquisition of property, plant, and equipment.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2023
	Sales and others				Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*)
Subsidiaries
LG Display America, Inc.		11,836,330		—		—		31
LG Display Japan Co., Ltd.		886,532		—		—		367
LG Display Germany GmbH		1,179,578		—		—		24,493
LG Display Taiwan Co., Ltd.		1,630,390		—		—		1,585
LG Display Nanjing Co., Ltd.		105,478		425,666		1,510,177		12,173
LG Display Shanghai Co., Ltd.		481,138		—		—		—
LG Display Guangzhou Co., Ltd.		25,122		1,042,837		1,371,846		17,964
LG Display Shenzhen Co., Ltd.		427,220		—		—		—
LG Display Yantai Co., Ltd.		895		345,527		379,821		1,586
LG Display (China) Co., Ltd.		1,325		57,966		994,229		1,562
LG Display Singapore Pte. Ltd.		1,141,925		—		—		128
L&T Display Technology (Fujian) Limited		117,993		8,496		4		179
Nanumnuri Co., Ltd.		238		—		—		23,671
LG Display Guangzhou Trading Co., Ltd.		450,139		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		31,514		—		2,708,782		32,327
Suzhou Lehui Display Co., Ltd.		99,047		—		23,079		28
LG Display High-Tech (China) Co., Ltd.		5,537		—		2,438,622		4,515

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2023
	Sales and Others				Purchase and others
	Sales and Others		Dividend income		Purchase of raw material and others		Others (*)
Associates
WooRee E&L Co., Ltd.		—		—		455		513
AVATEC Co., Ltd.		—		—		43,662		11,002
Paju Electric Glass Co., Ltd.		—		15,200		176,831		4,341
YAS Co., Ltd.		—		—		9,832		15,235
Material Science Co., Ltd.		—		—		—		179
Entity that has significant influence over the Company
LG Electronics Inc.		211,627		—		12,739		212,446

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)	2023
	Sales and others				Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Others (*)
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.		47,031		—		—		270
LG Electronics Vietnam Haiphong Co., Ltd.		434,789		—		—		967
LG Electronics Reynosa S.A. DE C.V.		29,314		—		—		810
LG Electronics do Brasil Ltda.		24,313		—		—		316
LG Electronics RUS, LLC		—		—		—		2,359
LG Electronics Egypt S.A.E		20,225		—		—		46
LG Innotek Co., Ltd.		7,229		—		18		100,272
P.T. LG Electronics Indonesia		25,520		—		—		2,231
Others		130		—		8		18,227

Total		19,220,579		1,895,692		9,670,105		489,823

(*)	Others include the amount of the acquisition of property, plant, and equipment.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(c)

Details of balances of receivables and payables from transaction with related parties as of December 31, 2024 and 2023 are as follows:


(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Subsidiaries
LG Display America, Inc.		2,360,124		1,817,773		473		4
LG Display Japan Co., Ltd.		195,597		134,107		1		26
LG Display Germany GmbH		521,945		50,322		12,631		3,234
LG Display Taiwan Co., Ltd.		778,589		60,663		181		96
LG Display Nanjing Co., Ltd.		265		2,869		2,572,165		1,796,033
LG Display Shanghai Co., Ltd.		122,650		241,039		29		—
LG Display Guangzhou Co., Ltd.		75		205		991,122		1,241,145
LG Display Guangzhou Trading Co., Ltd.		292,729		287,296		—		—
LG Display Shenzhen Co., Ltd.		88,304		75,709		—		—
LG Display Yantai Co., Ltd.		1		1		172,693		228,364
LG Display (China) Co., Ltd.		2,251		2,452		992,630		451,003
LG Display Singapore Pte. Ltd.		283,171		24,171		2,161,167		3
L&T Display Technology (Fujian) Limited		29,366		24,690		137,881		103,501
Nanumnuri Co., Ltd.		—		—		1,795		2,316
LG Display Vietnam Haiphong Co., Ltd.		19,057		23,402		1,686,540		1,180,951
Suzhou Lehui Display Co., Ltd.		6,311		24,829		32		2,532
LG Display High-Tech (China) Co., Ltd.		19,214		34,268		2,689,403		1,730,516

278

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Associates
WooRee E&L Co., Ltd. (*1)		—		695		—		645
AVATEC Co., Ltd. (*1)		—		—		—		4,775
Paju Electric Glass Co., Ltd.		—		—		64,140		56,136
YAS Co., Ltd. (*1)		—		—		—		7,875
Material Science Co., Ltd.		—		—		261		118
Entity that has significant influence over the Company
LG Electronics Inc. (*2)		177,926		62,027		1,042,000		1,044,258

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Subsidiaries of the entity that has significant influence over the Company
LG Innotek Co., Ltd. (*3)		1,734		2,521		201,297		211,476
P.T. LG Electronics Indonesia		4,335		3,771		53		108
LG Electronics Reynosa S.A. DE C.V		820		3,814		—		109
LG Electronics India Pvt. Ltd.		3,317		2,013		—		35
LG Electronics Vietnam Haiphong Co., Ltd.		32,967		76,952		919		211
LG Electronics RUS, LLC		—		—		—		203
LG Electronics Egypt S.A.E		3,877		369		7		1
Others		2,693		6,122		5,806		1,811

Total		4,947,318		2,962,080		12,733,226		8,067,485

(*1)	For the year ended December 31, 2024, as it was excluded from related parties and others due to loss of significant influence, there are no outstanding receivables or payables.

(*2)	Trades accounts and notes payable and others for LG Electronics Inc. as of December 31, 2024 and 2023 includes long-term borrowings of 1,000,000 million (see Note 12.(c)).

(*3)	Trade accounts and note payable and others for LG Innotek Co., Ltd. as of December 31, 2024 and 2023 includes deposits received amount 180,000 million from lease agreement.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(d)

Details of significant financial transactions with related parties and others for the years ended December 31, 2024 and 2023 are as follows:


	2024
(In millions of won)	Company Name	Borrowings		Capital increase		Collection of loans
Subsidiary	LG Display Singapore Pte. Ltd. (*1)		1,989,054		—		—
Associates	WooRee E&L Co., Ltd. (*2)		—		—		256
Entity that has significant influence over the Company	LG Electronics Inc.		—		436,031		—

(*1)	For the year ended December 31, 2024, the Company has entered into a borrowing agreement with LG Display Singapore Pte. Ltd. with a limit of USD 1,600 million (2,352,000 million), of which USD 1,470 million (2,160,900 million) has been executed and is included in short-term borrowings.

(*2)	For the year ended December 31, 2024, it was excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.

For the year ended December 31, 2024, the Company contributed 6,831 million in cash for the capital increase of LG DISPLAY FUND I LLC and increased by 47,700 million as a result of acquisition and disposal of Money Market Trust in addition to the above transactions.


	2023
(In millions of won)	Company Name	Borrowings		Collection of loans
Associates	WooRee E&L Co., Ltd.		—		183
Entity that has significant influence over the Company	LG Electronics Inc.(*)		1,000,000		—

(*)	The Company entered into a loan agreement with LG Electronics Inc. on March 27, 2023 for a total borrowing amount of 1,000,000 million, and received 650,000 million on March 30, 2023 and 350,000 million on April 20, 2023.

For the year ended December 31, 2023, the Company contributed 5,840 million in cash for the capital increase of LG DISPLAY FUND I LLC and increased by 92,900 million as a result of acquisition and disposal of Money Market Trust in addition to the above transactions.

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Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(e)

Large Enterprise Group Transactions


(In millions of won)

	For the year ended December 31, 2024				December 31, 2024
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.		105,300		2,761		—		164
LG Chem Ltd. and its subsidiaries		440		449,295		160		183,430
D&O Corp. and its subsidiaries (*1)		269		43,451		—		4,343
LG Corp. (*2)		—		63,471		7,551		10,731
LG Management Development Institute		—		30,536		3		340
LG CNS Co., Ltd. and its subsidiaries		—		177,676		—		64,692
HS AD Inc. and its subsidiaries		—		5,435		—		542
Robostar Co., Ltd.		—		545		—		369

Total		106,009		773,170		7,714		264,611

(*1)

Among the matters related to D&O Corp. (formerly S&I Corporation Co., Ltd.) and its subsidiaries, S&I Corporation Co., Ltd. and Xi C&A Co., Ltd. were excluded from the large corporate group as of March 19, 2024 and reflected based on the transaction amount for the three-month period ended March 31, 2024.

(*2)	According to the lease agreement signed with LG Corp., no recognized lease liabilities as of December 31, 2024. The lease repayment for the year ended December 31, 2024 amounts to 9,681 million.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued


(In millions of won)

	For the year ended December 31, 2023				December 31, 2023
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.		—		2,451		—		206
LG Chem Ltd. and its subsidiaries		252		354,072		18		155,312
D&O Corp. and its subsidiaries		308		434,179		—		69,503
LG Corp. (*1)		1,891		51,906		16,261		5,575
LG Management Development Institute		—		40,217		—		543
LG CNS Co., Ltd. and its subsidiaries		—		210,882		—		89,939
HS AD Inc. (formerly, G2R Inc.) and its subsidiaries (*2)		—		19,226		—		5,687
Robostar Co., Ltd.		—		708		—		217

Total		2,451		1,113,641		16,279		326,982

(*1)

(*2)	G2R Inc. changed its name to HS AD Inc. on July 1, 2023.

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Related Parties and Others, Continued

(f)

Key management personnel compensation

Details of compensation costs of key management for the years ended December 31, 2024 and 2023 are as follows:


(In millions of won)

	2024		2023
Short-term benefits		2,397		2,291
Expenses related to the defined benefit plan		604		355

		3,001		2,646

Key management refers to the registered directors who have significant control and responsibilities over the Company’s operations and business.

(g)

At the end of the reporting period, the Company did not set an allowance for doubtful accounts on the balance of receivables for related parties.

30.	Assets Held for Sale

For the year ended December 31, 2024, management of the Company decided to sell 51% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. to TCL CSOT. The contract was signed on September 26, 2024, and the transaction is expected to be completed within one year. As a result, the investments in LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets held for sale.

(a)

Details of assets held for sale


(In millions of won)
	December 31, 2024
Investments in subsidiaries (*)		1,016,645

(*)	There is no impairment loss recognized for assets held for sale, as the net fair value of the disposal group is expected to exceed the carrying amount.

(b)

There is no other comprehensive income recognized in relation to the disposal group classified as assets held for sale.

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Independent Auditor’s Report on

Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

LG Display Co., Ltd.

Opinion on Internal Control over Financial Reporting

We have audited Internal Control over Financial Reporting of LG Display Co., Ltd. (the “Company”) as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We also have audited, in accordance with Korean Standards on Auditing, the financial statements of the Company, which comprise the statement of financial position as at December 31, 2024, and the statement of comprehensive income, statement of changes in equity and statement of cash flow for the year then ended, and notes to the financial statements including material accounting policy information, and our report dated March 4, 2025 expressed unqualified opinion.

Basis for Opinion on Internal Control over Financial Reporting

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under these standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of internal control over financial reporting purposes and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting

Management is responsible for designing, implementing and maintaining effective internal control over financial reporting, and for its assessment about the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on the Effectiveness of Internal Control over Financial Reporting.

Those charged with governance have the responsibilities for overseeing internal control over financial reporting.

Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting

Our responsibility is to express an opinion on internal control over financial reporting of the Company based on our audit. We conducted the audit in accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

An audit of internal control over financial reporting performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of internal control over financial reporting and testing and evaluating the design and operating effectiveness of internal control over financial reporting based on the assessed risk.

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Definition and Inherent Limitations of Internal Control over Financial Reporting

The Company’s internal control over financial reporting purposes is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. The Company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Sang-Woo Nam, Certified Public Accountant.

Seoul, Korea

March 4, 2025

This report is effective as at March 4, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Company’s internal control over financial reporting thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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Management’s Report on the Effectiveness of

Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To the Shareholders, Board of Directors and Audit Committee of LG Display Co., Ltd.

We, as the Chief Executive Officer (CEO) and the Internal Control over Financial Reporting Officer of LG Display Co., Ltd. (“the Company”), assessed the effectiveness of the design and operation of the Company’s Internal Control over Financial Reporting for the year ended December 31, 2024.

The Company’s management, including ourselves, is responsible for designing and operating internal control over financial reporting.

We assessed the design and operating effectiveness of internal control over financial reporting in the prevention and detection of an error or fraud which may cause material misstatements in the preparation and disclosure of reliable financial statements.

We designed and operated internal control over financial reporting in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting established by the Operating Committee of Internal Control over Financial Reporting in Korea. And, we conducted an evaluation of internal control over financial reporting based on Detailed Enforcement Rules of the Regulation on External Audit and Accounting, etc. Table 6 Internal Control over Financial Reporting Evaluation and Reporting Standards.

Based on the assessment results, we believe that the Company’s internal control over financial reporting, as at December 31, 2024, is designed and operated effectively, in all material respects, in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

Internal control activities performed by the Company to address risks to embezzlement and other financial fraud

January 20, 2025

Cheoldong Jeong,

Chief Executive Officer

Sunghyun Kim,

Internal Control over Financial Reporting Officer

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Internal control activities performed by the Company to address risks to embezzlement and other financial fraud

Internal control over Financial Reporting


Category	Control Activities Performed by the Company	Design and Operation Assessment Results (Execution department, execution time, etc.)
Entity Level Control	<Operation of anti-fraud system> The management periodically notifies all executives and employees of the importance of ethical management related to the Code of Ethics and the Code of Conduct, and operates an anonymous reporting channel for violations of the Code of Ethics and internal accounting control regulations.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
Entity Level Control	<Periodic monitoring of Segregation of Duty Status> Internal Control & Consolidation Accounting Team defines incompatible tasks, and periodically monitors and reports on the adequacy of segregation of duty and access rights.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
Control of Treasury	<Account Registration Management> The cash management Team Leader reviews and approves the adequacy of account registration.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Seal, OTP management> Physical access to seals and OTPs is restricted except for the person in charge of the supervising department, and when using a seal, it can be stamped after confirming the purpose of use and approval details of the requesting department.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Segregation of Duty related to payment> Register Preliminary Payment, Electronic Payment, Internal Account Transfer, Foreign Exchange Transaction, etc., are separate from those in charge of the creator and the approver.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Daily Account Balance Reconciliation> The person in charge performs the reconciliation of the bank balance for each daily account and takes necessary action in case of any discrepancies.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Restriction on the use of corporate credit cards> Corporate cards are managed according to standards such as usage limits for each position, and the system is set up to prohibit the expense processing and approval for improper use.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
Other Process Level Control	<Supplier Account Registration Management> The discretionary authority of the department such as in charge of purchasing, etc., reviews and approves whether the evaluation details of the company for the new supplier meet the standards, and the cash management team leader checks the original documents required for the registration of the company and approves the account registration.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Sales Confirmation> At the end of each month, the person in charge of the sales department agrees/confirms the monthly sales amount with each customer, including the sales price and quantity by model, and reports it to the leader.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)
	<Report on Inventory Physical Inspection Results> The discretionary authority of the supervising department reviews and approves the results of the regular physical inspection of inventory assets.	As a result of the test performed, No material weakness found (Internal Control & Consolidation Accounting Team, ‘24.July, ‘24.November, ‘25.January)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	LG Display Co., Ltd.

	(Registrant)

Date: March 12, 2025	By:	/s/ Kyu Dong Kim
		(Signature)
	Name:	Kyu Dong Kim
	Title:	Vice President / Finance & Risk Management Division